The demand equation is .
is the price in dollars.
is the quantity sold of a certain product.
Solve for
.
.
(a)
\The revenue .
Substitute in
.
Revenue .
(b)
\The quantity sold of a certain product .
Revenue .
The revenue if units are sold is
.
(c)
\The function is a quadratic function.
Compare the function with standard form of a quadratic function.
\.
Since , the vertex is the maximum point on the parabola.
The revenue is a maximum when the quantity sold of a certain product
is
.
Maximum revenue :
\Maximum revenue is
(d)
\The price .
Maximum revenue is at
.
At , the company charge to maximum price.
The maximum price,
\ should the company charge to maximize the revenue.
(e)
\Graph and
are on the same Cartesian plane.
Find where the graphs intersects.
\The graph is shown below :
\The graphs intersect at and
From the graph the company should charge between to earn at least
in revenue.
\ \(a) Revenue .
(b) The revenue if units are sold is
.
(c) The maximum quantity is and maximum revenue is
(d) should the company charge to maximize the revenue.
(e) The company should charge between to earn at least
in revenue.