1) The following situation applies to questions 6 through 9. (Adapted from chapter 3 problem 6)
Joy’s Frozen Yogurt shops have enjoyed rapid growth in northeastern states in recent years. From the analysis of Joy’s various outlets, it was found that the demand curve follows this pattern:
Q = 200 – 300P + 120I + 65T – 250Ac + 400 Aj where
Q = number of cups served per week,
P = average price paid for each cup,
I = per capita income in the given market (thousands),
T = average outdoor temperature,
Ac = competition’s monthly advertising expenditures (thousands) and
Aj = Joy’s own monthly advertising expenditures (thousands)
One of the outlets has the following conditions: P=1.50, I=10, T=60, Ac=15, Aj=10.
Estimate the number of cups served per week by this outlet.