In some parts of the world, Red Lizzard Wine is alleged to increase one's longevity.It is produced by the process Q =min{(1/4)L, R}, where L is the number of spotted red lizards and R is gallons of rice wine.P_L = P_R = $1.Demand for Red Lizzard Wine in the United States is Q = 900P=^-² A^1/2.If the advertising budget is $144, the quantity of wine which should be imported into the United States is A)540 gallons. B)108 gallons. C)0 gallons. D)36 gallons. E)104 gallons.

Question

Quizplus · Accepted Answer

The demand function is Q = 900P^(-2)A^(1/2). With A = 144, A^(1/2) = 12. The price P is $1, so Q = 900(1)^(-2)(12) = 108 gallons.

In Some Parts of the World, Red Lizzard Wine Is