Jewel Co is also producing luxury earphones and has entered two different new markets. In the USA, it is initially charging low prices so as to gain rapid market share while demand is relatively elastic. In Europe, it is initially charging high prices so as to earn maximum profits while demand is relatively inelastic. Market research has revealed that the maximum demand for Jewel Co’s earphones in the USA is 72,000 units per year, and that demand will reduce by 8,000 units for every $5 that the selling price is increased. Jewel Co has calculated that the profit-maximising level of sales for its earphones, for the coming year, is 32,000 units.What is the optimum selling price at the profit-maximising level of sales (to the nearest $ how to solve this? kaplan has assumed that at the maximum demand of 72k the price is zero ,, can u explain this? they asumed this and took the folowing equation .P = a – 0.000625Q Substitute in P = 0, Q = 72,000 0 = a – (0.000625 × 72,000) a = 45 ..
