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Offered Price \$25.00

# cookbooks online-eco question

Question # 00000714
Subject: Economics
Due on: 09/30/2013
Posted On: 09/05/2013 08:52 AM

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Q:
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
\$1,000
Part I 1 graph plus calculations
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 – 9,000P, 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.
Part II