Share
Explore BrainMass

# maximum profits

To raise money for a group, we are selling women's shirts. total demand for women's shirts comes from two groups: students and working professionals. The demand curves for two groups are represented as:

1. Students: Qs=120-10Ps
(Q sub s=120-10P sub s)
2. working professionals: Qw=48-2Pw

a. We may consider buying from vendor that charges \$5 for every women's shirt. What would maximum profits be if we could not set different prices for students and working professionals;
b. When buying from same vendor who charges us \$5 for every shirt, what would maximum profits be if we could sell the shirts to students and working professionals at different prices.

#### Solution Preview

To raise money for a group, we are selling women's shirts. Total demand for women's shirts comes from two groups: students and working professionals. The demand curves for two groups are represented as:

1. Students: Qs =120 - 10Ps Ps = 12 - 0.1Qs

2. Working professionals: Qw = 48 - 2Pw Pw = 24 - 0.5Qw

a. We may consider buying from ...

#### Solution Summary

This job determines maximum profits in the case. Demand curves for two groups are represented.

\$2.19