Determine the expected demand

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The manufacturer of a new, improved widget must estimate sales for the first 6 years of production. The upper limit on annual demand for these widgets is believed to be 1,000,000 units. The widget will be sold for $12 the first year and will decrease in price $.50 each year. Using a Pearl curve with a = 100,000 and b = 4, determine the expected demand for the 6-year period, and determine the revenue that can be expected each year.

Reference no: EM131810567

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