Quantity Demanded. The Sharper Edge, Inc. is a leading retailer of Yingsu Knives, a set of kitchen cutlery, which it markets on a nationwide basis. SEI knife sets are either sold directly to the public through national television marketing programs, or given away as promotional items. Operating experience during the past year suggests the following demand function for its knife sets:

Where Q is quantity, P is the price ($), N is the average Nielson rating of television programs during which SEI advertises Yingsu Knives, I is average disposable income per household ($), and A is advertising expenditures ($).
A. Determine the demand curve faced by SEI in a typical market where P = $35, N = 18.5, I = $44,000, and A = $500,000. Show the demand curve with quantity expressed as a function of price, and price expressed as a function of quantity.
B. Calculate the quantity demanded at prices of $40, $35, and $30.
C. Calculate the prices necessary to sell 264,000, 292,000, and 320,000 sets of knives.

Question

Quantity Demanded. The Sharper Edge, Inc. is a leading retailer of Yingsu Knives, a set of kitchen cutlery, which it markets on a nationwide basis. SEI knife sets are either sold directly to the public through national television marketing programs, or given away as promotional items. Operating experience during the past year suggests the following demand function for its knife sets:
  
Where Q is quantity, P is the price ($), N is the average Nielson rating of television programs during which SEI advertises Yingsu Knives, I is average disposable income per household ($), and A is advertising expenditures ($).
A. Determine the demand curve faced by SEI in a typical market where P = $35, N = 18.5, I = $44,000, and A = $500,000. Show the demand curve with quantity expressed as a function of price, and price expressed as a function of quantity.
B. Calculate the quantity demanded at prices of $40, $35, and $30.
C. Calculate the prices necessary to sell 264,000, 292,000, and 320,000 sets of knives.

Quizplus · Accepted Answer

The Answer of Quantity Demanded. The Sharper Edge, Inc. is a leading retailer of Yingsu Knives, a set of kitchen cutlery, which it markets on a nationwide basis. SEI knife sets are either sold directly to the public through national television marketing programs, or given away as promotional items. Operating experience during the past year suggests the following demand function for its knife sets:
  
Where Q is quantity, P is the price ($), N is the average Nielson rating of television programs during which SEI advertises Yingsu Knives, I is average disposable income per household ($), and A is advertising expenditures ($).
A. Determine the demand curve faced by SEI in a typical market where P = $35, N = 18.5, I = $44,000, and A = $500,000. Show the demand curve with quantity expressed as a function of price, and price expressed as a function of quantity.
B. Calculate the quantity demanded at prices of $40, $35, and $30.
C. Calculate the prices necessary to sell 264,000, 292,000, and 320,000 sets of knives.