Question;You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estimate that the annual cost of this business will be as follows:Technology (Web design and maintenance) $5,000Postage and handling $1,000Miscellaneous $3,000Inventory of cookbooks $2,000Equipment $4,000Overhead $1,000Part IYou must give up your full-time job, which paid $50,000 per year, and you worked part-time for half of the year.The average retail price of the cookbooks will be $30, and their average cost will be $20.Assume that the equation for demand is Q = 40,000 ? 500P, whereQ = the number of cookbooks sold per monthP = the retail price of books.Show what the demand curve would look like if you sold the books between $25 and $35.
Paper#53605 | Written in 18-Jul-2015Price : $19