Asked by Jessica Hartley on May 13, 2024
Verified
Using Solver,determine the new price of a single standard suite.
A) $85.00
B) $79.81
C) $90.00
D) $147.98
New Price
The updated or most recent cost at which an item or service is sold in the market.
Standard Suite
A collection of benchmarks, protocols, or specifications that establish a norm or minimum level of acceptability for products, services, or practices.
- Analyze pricing techniques considering the elasticity of demand to enhance revenue generation.
Verified Answer
MA
Maidul AhsanMay 18, 2024
Final Answer :
B
Explanation :
Using Solver, the optimal price for a standard suite is $79.81. This will result in selling 681 standard suites compared to the historical average of 568, generating a revenue increase of approximately $1.4 million. The prices of gold and platinum suites are not relevant to this problem.
Learning Objectives
- Analyze pricing techniques considering the elasticity of demand to enhance revenue generation.