As the selling price of a product increases, demand decreases. Fewer people will buy a product if it is more expensive. This is a very important concept. The demand equation for new iSmarts is given by 0.025x , where p is the unit p = 100 price (in dollars) of the iSmart and x is the number of units produced. We can determine the total revenue (money earned for selling x iSmarts) by multiplying the number of items we sell, x and the price p. The total revenue obtained by producing and selling x iSmarts is given by = xp 100x – 0.025x². It makes sense that this function is quadratic. The company can price the iSmarts so high that no one will buy them and the revenue will be zero. The can also set the price to $0, but the revenue will still be $0, no matter how many iSmarts they "sell". In between, the graph is a parabola opening downward. Determine prices p that would keep revenue above 6530 dollars. Give your answers to 2 decimal places. The revenue will be above 6530 if price is between $ (lower price) and $ (higher price) How many iSmarts will be sold at these prices? Give the nearest whole number of iSmarts. After all, who would buy a fraction of an iSmart? At the lower price, iSmarts will be sold and at the higher price, iSmarts will be sold. What price will maximize revenue, how many iSmarts is this, and what is the maximum revenue? The company will maximize revenue if they sell the iSmarts for $ They will sell iSmarts and will have a revenue of $
As the selling price of a product increases, demand decreases. Fewer people will buy a product if it is more expensive. This is a very important concept. The demand equation for new iSmarts is given by 0.025x , where p is the unit p = 100 price (in dollars) of the iSmart and x is the number of units produced. We can determine the total revenue (money earned for selling x iSmarts) by multiplying the number of items we sell, x and the price p. The total revenue obtained by producing and selling x iSmarts is given by = xp 100x – 0.025x². It makes sense that this function is quadratic. The company can price the iSmarts so high that no one will buy them and the revenue will be zero. The can also set the price to $0, but the revenue will still be $0, no matter how many iSmarts they "sell". In between, the graph is a parabola opening downward. Determine prices p that would keep revenue above 6530 dollars. Give your answers to 2 decimal places. The revenue will be above 6530 if price is between $ (lower price) and $ (higher price) How many iSmarts will be sold at these prices? Give the nearest whole number of iSmarts. After all, who would buy a fraction of an iSmart? At the lower price, iSmarts will be sold and at the higher price, iSmarts will be sold. What price will maximize revenue, how many iSmarts is this, and what is the maximum revenue? The company will maximize revenue if they sell the iSmarts for $ They will sell iSmarts and will have a revenue of $
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.2P
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Transcribed Image Text:As the selling price of a product increases,
demand decreases. Fewer people will buy
a product if it is more expensive. This is a
very important concept. The demand
equation for new iSmarts is given by
0.025x , where p is the unit
p = 100
price (in dollars) of the iSmart and x is the
number of units produced. We can
determine the total revenue (money
earned for selling x iSmarts) by
multiplying the number of items we sell, x
and the price p. The total revenue
obtained by producing and selling x
iSmarts is given by
= xp
100x – 0.025x².
It makes sense that this function is
quadratic. The company can price the
iSmarts so high that no one will buy them
and the revenue will be zero. The can also
set the price to $0, but the revenue will
still be $0, no matter how many iSmarts
they "sell". In between, the graph is a
parabola opening downward.
Determine prices p that would keep
revenue above 6530 dollars. Give your
answers to 2 decimal places.
The revenue will be above 6530 if price is
between $
(lower
price) and $
(higher
price)
How many iSmarts will be sold at these
prices? Give the nearest whole number of
iSmarts. After all, who would buy a
fraction of an iSmart?
At the lower price,
iSmarts will be sold and at the higher
price,
iSmarts will be
sold.
What price will maximize revenue, how
many iSmarts is this, and what is the
maximum revenue?
The company will maximize revenue if
they sell the iSmarts for $
They will sell
iSmarts and will have
a revenue of $
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