As a new owner of the supermarket, you have inherited a large inventory of unsold imported Limburger cheese, and you would like to price it so that your revenue from selling it is as great as possible. Previous sale figures of the cheese are shown in the following table. $$\begin{array} { | l | l | l | l | }
\hline \text { Price per pound, } \boldsymbol { p } & \$ 3.00 & \$ 4.00 & \$ 5.00 \
\hline \text { Monthly sales (pounds), } q & 407 & 301 & 223 \
\hline
\end{array}$$ Use the sale figures for the $3 and $5 per pound prices to construct a demand function of the form $q = A e ^ { - b p }$ where A and b are constants you must determine. (The values of A, b were rounded.)

A) $q = 1,100 e ^ { - 1.3 p }$
B) $q = 1,000 e ^ { - 0.4 p }$
C) $q = 1,100 e ^ { - 0.2 p }$
D) $q = 900 e ^ { - 1.3 p }$
E) $q = 1,000 e ^ { - 0.3 p }$

Question

As a new owner of the supermarket, you have inherited a large inventory of unsold imported Limburger cheese, and you would like to price it so that your revenue from selling it is as great as possible. Previous sale figures of the cheese are shown in the following table. $$\begin{array} { | l | l | l | l | } 
\hline \text { Price per pound, } \boldsymbol { p } & \$ 3.00 & \$ 4.00 & \$ 5.00 \
\hline \text { Monthly sales (pounds), } q & 407 & 301 & 223 \
\hline
\end{array}$$   Use the sale figures for the $3 and $5 per pound prices to construct a demand function of the form $q = A e ^ { - b p }$ where A and b are constants you must determine. (The values of A, b were rounded.)
 
A) $q = 1,100 e ^ { - 1.3 p }$
B) $q = 1,000 e ^ { - 0.4 p }$
C) $q = 1,100 e ^ { - 0.2 p }$
D) $q = 900 e ^ { - 1.3 p }$
E) $q = 1,000 e ^ { - 0.3 p }$

Quizplus · Accepted Answer

The Answer of As a new owner of the supermarket, you have inherited a large inventory of unsold imported Limburger cheese, and you would like to price it so that your revenue from selling it is as great as possible. Previous sale figures of the cheese are shown in the following table. $$\begin{array} { | l | l | l | l | } 
\hline \text { Price per pound, } \boldsymbol { p } & \$ 3.00 & \$ 4.00 & \$ 5.00 \
\hline \text { Monthly sales (pounds), } q & 407 & 301 & 223 \
\hline
\end{array}$$   Use the sale figures for the $3 and $5 per pound prices to construct a demand function of the form $q = A e ^ { - b p }$ where A and b are constants you must determine. (The values of A, b were rounded.)
 
A) $q = 1,100 e ^ { - 1.3 p }$
B) $q = 1,000 e ^ { - 0.4 p }$
C) $q = 1,100 e ^ { - 0.2 p }$
D) $q = 900 e ^ { - 1.3 p }$
E) $q = 1,000 e ^ { - 0.3 p }$

As a New Owner of the Supermarket, You Have Inherited