# Econ

You estimate that the annual cost of this business will be as

follows:

Technology (Web design and maintenance)

$5,000

Postage and handling

$1,000

Miscellaneous

$3,000

Inventory of cookbooks

$2,000

Equipment

$4,000

Overhead

$1,000

You must give up your full-time job, which paid $50,000 per year, and you

worked part-time for half of the year.

The average retail price of the cookbooks will be $30, and their average cost

will be $20.

Assume that the equation for demand is Q = 10,000 – 9,000P, where

Q = the number of cookbooks sold per month

P = the retail price of books.

Show what the demand curve would look like if you sold the books between $25

and $35.