QUESTION: your marketing department has identified the following customer demographics in the following table. Tell students to construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000.
|
Group |
Value |
Frequency |
|
Baby boomers |
$5 |
20% |
|
Generation X |
$4 |
10% |
|
Generation Y |
$3 |
10% |
|
`Tweeners |
$2 |
10% |
|
Seniors |
$2 |
10% |
|
Others |
$0 |
40% |
