Question: The demand for ceiling fans can be modeled below as D ( p ) = 2 5 . 0 2 ( 0 . 9 9

The demand for ceiling fans can be modeled below as
D(p)=25.02(0.996^p) thousand ceiling fans
where p is the price (in dollars) of a ceiling fan.
(a) According to the model, is there a price above which consumers will no longer purchase fans? Explain why or why not.
The model is exponential and crosses does not cross the horizontal axis. Therefore there is a price is no price above which consumers will not purchase a ceiling fan.
(b) Calculate the amount that consumers are willing and able to spend to purchase 15 thousand ceiling fans. (Round your answer to three decimal places.)
$5657.250 thousand
(c) How many fans will consumers purchase when the market price is $100?(Round your answer to three decimal places.)
$16.758 thousand fans
(d) Find the consumers' surplus when the market price is $100.(Round your answer to three decimal places.)
$_______ thousand

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