The demand for ceiling fans can be modeled below as
D(p)=25.82(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
◻
1 -
◻
5] the horizontal axis. Therefore there
◻
◻
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.)
$
◻
◻
thousand
(c) How many fans will consumers purchase when the market price is
$100
? (Round your answer to three decimal places.)
◻
thousand fans
(d) Find the consumers' surplus when the market price is
$100
. (Round your answer to three decimal places.)
$
◻
thousand