Chapter 13, Problem 5P

Jim’s Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows: D_s = demand for the Sky Eagle, P_s is the selling price of the Sky Eagle, D_H is the demand for the Horizon, and P_H is the selling price of the Horizon.

$\begin{array}{l}{D}_{\text{S}}=222-0.60P_{\text{s}}+0.35P_{\text{H}}\\ D_{\text{H}}-270+0.10P_{\text{s}}-0.64P_{\text{H}}\end{array}$

The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these two models, and find the prices that maximize revenue.