A university student center sells 1,600 cups of coffee per day at a price of $2.40. (A) A market survey shows that for every $0.05 reduction in price, 50 more cups of coffee will be sold. How much should the student center charge for a cup of coffee in order to maximize revenue? (B) A different market survey shows that for every $0.10 reduction in the original $2.40 price, 60 more cups of coffee will be sold. Now how much should the student center charge for a cup of coffee in order to maximize revenue?

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
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A university student center sells 1,600
cups of coffee per day at a price of $2.40.
(A) A market survey shows that for every $0.05 reduction in
price, 50 more cups of coffee will be sold. How much
should the student center charge for a cup of coffee in
order to maximize revenue?
(B) A different market survey shows that for every $0.10
reduction in the original $2.40 price, 60 more cups of
coffee will be sold. Now how much should the student
center charge for a cup of coffee in order to maximize
revenue?
Transcribed Image Text:A university student center sells 1,600 cups of coffee per day at a price of $2.40. (A) A market survey shows that for every $0.05 reduction in price, 50 more cups of coffee will be sold. How much should the student center charge for a cup of coffee in order to maximize revenue? (B) A different market survey shows that for every $0.10 reduction in the original $2.40 price, 60 more cups of coffee will be sold. Now how much should the student center charge for a cup of coffee in order to maximize revenue?
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