A company sells 4000 units each for $2. For every

Bobrovnik61j

Bobrovnik61j

Answered question

2022-03-02

A company sells 4000 units each for $2. For every 5 cent increase, 40 fewer are sold. At what price should they sell if they want a revenue of $10450?

Answer & Explanation

copausc20

copausc20

Beginner2022-03-03Added 8 answers

Step 1
Model your equation using a quadratic function:
(400040x)(2+0.05x)=y
This is true because price is given by the second bracket and the units is given by the first bracket.
Now solve for x by plugging in y=10450
Then your price is given by 2+0.05x
Zernerqcw

Zernerqcw

Beginner2022-03-04Added 11 answers

Step 1
The demand seems like a linear function of the price, so D(p)=+b.
Find m from the description of the change in demand when you change prices.
Find b from the point (2,4000) that you are given.
Revenue is price times units sold, i.e. R(p)=pD(p). Use D(p) you found to express what equation will R(p) obey.

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