The average retail price of cookbooks will be 30 and their

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Reference no: EM13394268

You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estimate that the annual cost of this business will be as follows:

Technology (Web design and maintenance) $5,000

Postage and handling $1,000

Miscellaneous $3,000

Inventory of cookbooks $2,000

Equipment $4,000

Overhead $1,000

Part I

You must give up your full-time job, which paid $50,000 per year, and you worked part-time for half of the year.

The average retail price of the cookbooks will be $30, and their average cost will be $20.

Assume that the equation for demand is Q = 10,000 - 90P, where

Q = the number of cookbooks sold per month

P = the retail price of books.

Show what the demand curve would look like if you sold the books between $25 and $35.

Reference no: EM13394268

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