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MGSC 1206.2
Assignment #8
Winter 2008
Due: 1 pm, Friday, April 4
th
Note: Points will be deducted if you do not
(a) show your work including suitable
calculations, (b) use proper notation, and (c) answer word problems with words.
Hand in your answers to the following questions:
Problem 1: 17.3 #32.
Problem 2: 17.3 #34.
Problem 3:
A company sells two models of toaster.
Increasing the price of one model will not only
decrease the demand for this item, but also encourage consumers to purchase the other.
They
are substitutes for one another (they compete).
This is reflected in the following relations.
q
p
y
q
p
x
2
270
3
150

+
=
+

=
where p and q are the prices of the two models of toaster and x and y are the corresponding
demands at these prices.
a)
Construct a combined revenue function for the two models, with the prices as the
decision variables.
(i.e. find
)
,
(
q
p
R
).
b)
What is the revenue when the prices are $60 for model #1 and $60 for model #2?
What
are the quantities sold (x and y) for the 2 products?
c)
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This note was uploaded on 10/25/2011 for the course MATH 1216 taught by Professor Jang during the Spring '11 term at Saint Mary's University Texas.
 Spring '11
 Jang

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