to the transactions above. 2. (25p.) Ali buys pencils for $2 each, and sells them in...

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to the transactions above. 2. (25p.) Ali buys pencils for $2 each, and sells them in the Taxim Square for $5 each. He sells 20 pencils in a day. Total sales decrease 2 units for every $ price increase and increase 2 units for every $ price decrease. It costs $15 for Ali to go to Taxim Square and wait all day, no matter how much pencils he sells. (a) Find sales revenue, gross profit and net profit of Ali when the pencil price is $5. (b) Draw the demand line for Ali's pencils and show sales revenue and gross profit as shaded regions on the graph. (c) How will sales, sales revenue, gross profit and net profit would be affected if Ali decides to sell the pencils for $7? to the transactions above. 2. (25p.) Ali buys pencils for $2 each, and sells them in the Taxim Square for $5 each. He sells 20 pencils in a day. Total sales decrease 2 units for every $ price increase and increase 2 units for every $ price decrease. It costs $15 for Ali to go to Taxim Square and wait all day, no matter how much pencils he sells. (a) Find sales revenue, gross profit and net profit of Ali when the pencil price is $5. (b) Draw the demand line for Ali's pencils and show sales revenue and gross profit as shaded regions on the graph. (c) How will sales, sales revenue, gross profit and net profit would be affected if Ali decides to sell the pencils for $7?

Answer rating: 100% (QA)

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