Gurgling Springs, Inc. Is a bottler of natural spring water distributed throughout New England states.Five-gallon containers of GSI spring water are regionally promoted and distributed through grocery chains.Operating experience during the past year suggests the following demand function for its spring water:
Q=250- 100P + 0.01 POP +0.21 +0.3A
Where Q is quantity in thousands of five-gallon containers, P is price ($), Pop is population, I isdisposable income per capita ($), and A is advertising expenditures ($).
A.) Determine the demand curve faced by CPI in a typical market where P= $4, Pop= 40,000 persons, I=$3,000 and A=$ 4,000.Show demand curve with quantity expressed as a function of price, and price expressed as a function of quantity.
B.) Calculate the quantity demanded at prices of $5, $4, and $3
C.) Calculate the prices necessary to sell 1,250, 1,500 and 1,750 thousand s of five gallon containers.