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A pharmacist has 300 units of a vitamin C 250 mg and he is out of the Vitamin C 500mg. The demand for the 250mg is d(p) = (500 - 20p)+ and for that of the 500mg is d(p)= (300 - 10p)+ . If the pharmacist receives an order for the 500mg, he will have to give two units of the 250mg (as the daily intake will have to double).
a. If the pharmacist wants to charge one price for the vitamin 250 (no matter whether the demand is for 250 or for 500 mg (i.e. two units). What should be this price? Compute total revenues. Formulate the problem and then solve it using some solver
b. What would you recommend the pharmacist to do to increase his revenues? Compare the revenues in b. to those in a.
c. How could you obtain your results in b. without using solver? Compute the answers analytically. Explain carefully.
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