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Leonard’s Science Shop sells lab supplies. At the end of his second year in business, Leonard surveyed his customers asking how many beakers and test tubes each customer would buy at different prices. He recorded these price and quantity combinations to come up with the following demand curves. Beakers: Qd = 80 – 4P Test Tubes: Qd = 100 – 5P Leonard sells both goods and wants to increase the store’s revenue as much as possible by having a sale. He wants to reduce the price of either beakers OR test tubes, but not both. Which one should he put on sale? (Assume beakers and test tubes are NOT related goods.)
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