Determine the expected demand for the six-year period


Problem

The manufacturer of a new, improved widget must estimate sales for the first 6 years of production. The upper limit on annual demand for these widgets is believed to be 1,000,000 units. The widget will be sold for $12 the first year and will decrease in price $.50 each year. Using a Pearl curve with a = 100,000 and b = 4, determine the expected demand for the 6-year period, and determine the revenue that can be expected each year.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Determine the expected demand for the six-year period
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