Estimate the parameters $($a$,$ b$)$ of a linear demand model,

D

$($

p

$)$

$=$

a

$$

b

$$

p

$,$ using the above WTP information. What is the revenue$-$maximizing price based on the linear demand model? Choose the closest number.

Group of answer choices

$200$

$240$

$270$

$300$

$330$As you get on with your internship, you soon realize that the store is popular among the locals, especially among students. However, given their limited budgets, students do not often shop at FashioNow. Realizing there is an untapped market, you run a survey on the university campus to understand how much students may be willing to pay. The result of your survey is:

WTP

Frequency

$100$

$180$

$200$

$25$

$300$

$20$

$400$

$15$

$500$

$5$

Given the above information, you suggest holding a sales event at the of the season on the university campus. What should be the discounted price on the campus?

Group of answer choices

$100$

$200$

$300$

$400$

$500$