The Radio Shop sells two popular models of portable sport radios: model A and model B. The sales of these products are not independent of each other (in economics, we call these substitutable products, because if the price of one increase, sales of the other will increase). The store wishes to establish a pricing policy to maximize revenue from the products. A study of price and sales data shows the following relationships between the quantity sold (N) and prices (P) of each model (i.e. PA → Price of model A, NA → Number of model A sold, etc.):

NA = 20 – 0.62PA + 0.30PB

NB = 29 + 0.10PA – 0.60PB

• Construct a spreadsheet model for the total revenue.
• Develop a two-way data table to estimate the optimal prices for each product in order to maximize the total revenue.
• Use Solver to find the optimal prices.
• Write a Python code which takes the value of PA and PB and calculates the total revenue. Copy a screenshot of your code in your solution or share the link of your code.

Answer rating: 100% (QA)

a Na Number of model A sold 20 062C3 03C4 Nb Number of model B sold 29 01C3 06C4 Pa Price of model A 0 Pb Price of model B 0 Total Revenue C1C3C2C4 b Two way data table is as follows 00 00 10 20 30 40 ... View the full answer