Find formula for the market demand for barts hot dogs

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Reference no: EM13894131

Bart Wurst runs the only hot-dog stand in a large park in a large boring town. On Sunday’s people in this town all sit in the park and sunbathe. For any t between 0 and 30, the number of people who are sitting within t minutes of Bart’s stand is 15t 2. People in Bart’s town are lazy and hate to walk. They think that every minute of walking they do is as bad as spending $0.10. Everybody in the park has a reservation price of $1 for a hot dog, where the cost of a hot dog includes the subjective cost of walking as well as the money price they have to pay when they get there. (Nobody has ever thought of fetching a hot dog for someone else.) Find a formula for the market demand for Bart’s hot dogs. Explain how you got it.

Reference no: EM13894131

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