Question: Please show steps and kindly explain so that I will understand it. Thank you. Problem 3 (Dynamic Pricing): Suppose now that we have 775 units

Please show steps and kindly explain so that I will understand it. Thank you.

Please show steps and kindly explain so that I will understand it.

Problem 3 (Dynamic Pricing): Suppose now that we have 775 units of product to sell over a three-day period, and that the demand curves for the individual days are linear, as follows (again assume that there is no demand crossover): DemandDay1DemandDay2DemandDay3Demand=65025PriceDemand=90040PriceDemand=65025Price (a) If we are obliged to charge the same price on all days, what price will maximize total revenue derived from our fixed inventory? (b) If we are free to charge different prices on different days and there is no demand crossover, what prices will maximize total revenue derived from our fixed inventory? (c) Suppose that, after implementing on day 1 the optimal price that you computed in part (b) above, you find that sales on day 1 are 10% greater than you expected. What price do you now recommend for days 2 and 3

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