IpodDemand

IpodDemand - 0-100 69 $50 101-200 95 $150 201-300 92 $250...

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Distribution of willingness to pay for an iPod. (Assuming people who answered in a range were all at middle of that range.) Range Number of students Willingness to pay 0-100 43 $50 101-150 68 $125 151-200 52 $175 201-250 17 $225 250-300 8 $275 300+ 7 $400 Note: 82% of class members report that theyhave an iPod. Smallest iPod nano costs $149. Exercise At what price would Apple get the most revenue? What price would give Apple the most profit if it costs them $100 to produce and sell an iPod. Distribution of willingness to pay for an iPhone (Assuming people who answered in a range were all at middle of that range.) Range Number of students willingness to pay
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Unformatted text preview: 0-100 69 $50 101-200 95 $150 201-300 92 $250 301-400 47 $350 401-500 13 $450 501-600 4 $550 601-700 2 $650 701-800 1 $750 801-1000 1 $900 1000+ 5 $1,500 Note: About 6% of class report having an iPhone I phones cost $599 until a couple of weeks ago. Now cost $399. Exercise At what price would Apple get the most revenue? What price would give Apple the most profit if it costs them $100 to produce and sell an iPhone. What price would give Apple the most profit if it costs them $150 to produce and sell an iPhone. What price would give Apple the most profit if it costs them $200 to produce and sell an iPhone....
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This note was uploaded on 12/25/2011 for the course ECON 1 taught by Professor Bergstrom during the Fall '07 term at UCSB.

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