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Business, 02.09.2020 23:01 amy290

Suppose the demand (in thousands) for a toaster is given by 100p−2, where p is the price in dollars charged for the toaster. a. If the variable cost of producing a toaster is $10, what price maximizes profit? Consider prices from $12 to $30, at $2 increments.$b. The elasticity of demand is defined as the percentage change in demand created by a 1% change in price. Build a data table that shows how the demand for toasters varies when the price increases by consecutive 1% increments. Start with a price of $18.Does the elasticity depend on price?The demand for toasters has Select constant decreasing increasing elasticity. In other words, the elasticity Select doesn't depends on the price of the toaster. c. Would this be true if the demand for toasters were linear in price?

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Suppose the demand (in thousands) for a toaster is given by 100p−2, where p is the price in dollars...
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