Reference no: EM133129951

Use simple regression on the data in the spreadsheet to come up with a mathematical expression for the demand curve for your product.

Using your regression equation, calculated the expected quantity and the price elasticity of demand at each of the following price points: $20, $25, $30, $35, $40, $45 $50. Identify which prices are in the elastic range and which are in the inelastic range. Assume your company is currently selling shirts for $25 each. Should they increase or decrease their price in order to maximize total revenue? Why? According to your regression results, at which price ($20, $25, $30, $35, $40, $45, $50) is total revenue maximized?

P Q

50 165

45 210

40 270

35 300

35 270

35 315

35 240

30 375

30 345

30 354

25 390

25 405

25 401

20 439

20 430

20 442