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Q3. TATA Optical deals in prescription sunglasses. Demand for a particular brand of sunglasses
is composed of two segments:
-style-focused consumers who are less sensitive to price (more inelastic dd)
-value-focused consumers who are most sensitive to price (more elastic)
Segment
MRP
MWB
Style-focused (SF)
$70
20
Value-focused (VF)
$40
60
If variable cost for a prescription sunglass is $10, then calculate the following:
a) Optimal Price for:
Segment SF: 40
Segment VF: 25
b) QuantityDemandedfor:
Segment SF:
Segment VF:
c) Total Contribution at optimal prices for:
Segment SF:
Segment VF:
Segment
MRP
MWB
Style-focused (SF)
$70
20
Value-focused (VF)
$40
60

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Q3. TATA Optical deals in prescription sunglasses. Demand for a part.pdf

  • 1. Q3. TATA Optical deals in prescription sunglasses. Demand for a particular brand of sunglasses is composed of two segments: -style-focused consumers who are less sensitive to price (more inelastic dd) -value-focused consumers who are most sensitive to price (more elastic) Segment MRP MWB Style-focused (SF) $70 20 Value-focused (VF) $40 60 If variable cost for a prescription sunglass is $10, then calculate the following: a) Optimal Price for: Segment SF: 40 Segment VF: 25 b) QuantityDemandedfor: Segment SF: Segment VF: c) Total Contribution at optimal prices for: Segment SF: Segment VF: Segment MRP MWB Style-focused (SF) $70 20 Value-focused (VF) $40 60