After the price is number of subscribers which does show as decimal but as indicated to us it is to be in thousands. For instance 1,258 and the other numbers would be 940. I know confusing but this is what was given to me.
Confirm: 1025 will subscribe at $7.50, but 940 at $7.00?
additional question:Where is price unit elastic between 10.00 and 11.50?
I used the slope -0.077948571* (P/Q).
yes that is correct.
I apologize for not being thorough but yes those are also in thousands for the license fees and general fees. Let me see if I can upload the file.
Not sure if that came through ok, I will try something else if that upload did not work.
The file is fine. The problem also only lists 852 customers and the gross revenue of $8946 without factoring in the costs. Since the question is about revenues, can we disregard costs? "I am particularly interested (1) in whether lowering the price will yield higher revenues, and (2) in an estimate of the maximum monthly revenues we can achieve through this channel."
I am also still trying to figure why the table says 544 customer at $10.50 instead of the 852 that is stated in the problem.
Yes you can leave that out. Just need help with answering the information listed. Thanks.
One last question: will the additional subscriptions generated by the lower price fully offset the revenues lost from existing base of customers?