The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 230, Camera...

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The Camera Shop sells two popular models of digital SLR cameras(Camera A Price: 230, Camera B Price: 310). The sales of theseproducts are not independent of each other, but rather if the priceof one increase, the sales of the other will increase. Ineconomics, these two camera models are called substitutableproducts. The store wishes to establish a pricing policy tomaximize revenue from these products. A study of price and salesdata shows the following relationships between the quantity sold(N) and prices (P) of each model: NA = 192 - 0.5PA + 0.25PB NB =305 + 0.08PA - 0.6PB Construct a model for the total revenue andimplement it on a spreadsheet. Develop a two-way data table toestimate the optimal prices for each product in order to maximizethe total revenue. Vary each price from $250 to $500 in incrementsof $10.
Max profit occurs at Camera A price of $ _
Max profit occurs at Camera B price of $ _

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AnswerGiven data Demandfunction for camera A and camera B areNA 192 05 PA 025 PBNB 305 008 PA 06 PB Here weneed to find out the max profit occurs at Camera A price and maxprofit occurs at Camera B priceNow for See Answer

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