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Business Analytics · End Term · 24 Dec 2023 · September 2023 term · Set ADF3

Question 13: What should be the price at which the shop should sell a…

Question 13

+1 markNumerical answer

The demand for cycles at IITM during the admission season is seen to follow the linear demand response curve D(p) = 300000 – 13*P. For the coming academic year, the bicycle shop at IITM is going to procure bicycles from a manufacturer at Rs. 8000/ cycle
Then answer the given subquestions.

What should be the price at which the shop should sell a bicycle if it wants to maximize the profit? (Note: Enter the answer rounded to two decimal places. For example, if the answer is “1.234”, then enter it as “1.23”)

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Correct answer: 15538.5 (accepted within ±0.5)

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Question 13 of 35 in the IIT Madras BS Business Analytics (Business Analytics) End Term paper sat on 24 Dec 2023, in the September 2023 term (IIT M FOUNDATION FN EXAM FDF1 24 Dec 2023). It carries 1 mark.

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