A store sells two brands of laptop sleeves. The store pays $25 for each brand A sleeve and $30 for each brand B sleeve. A consulting firm has estimated the daily demand equations for these two competitive products to be
x = 130 - 4p + q Demand equation for brand A
y = 115 + 2p - 3q Demand equation for brand 3
where p is the selling price for brand A and q is the selling price for brand B.
(A) Determine the demands x and y when p = $40 and q = $50; when p = $45 and q = $55.
(B) How should the store price each brand of sleeve to maximize daily profits? What is the maximum daily profit? [Hint: C = 25x + 30y, R = px + qy, and P = R - C]