A store sells two brands of camping chairs. The store pays $60 for each brand A chair and $80 for each brand B chair. The research department has estimated the weekly demand equations for these two competitive products to be

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 = $100 and q = $120; when p = $110 and q = $110.

(B) How should the store price each chair to maximize weekly profits? What is the maximum weekly profit?

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x = y = 260 3p + q 180p 2q - Demand equation for brand A Demand equation for brand B