During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the necklaces for $10 each and his sales averaged 20 per day. When he increased the price by $1, he found that the average decreased by two sales per day. (a) Find the demand function (price p as a function of units sold x), assuming that it is linear. P(x) = (b) If the material for each necklace costs Terry $6, what should the selling price be to maximize his profit? per necklace

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter3: Functions And Graphs
Section3.3: Lines
Problem 60E
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During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the necklaces for $10 each and his sales averaged 20 per day. When he increased the price by $1, he found that the average decreased by two
sales per day.
(a) Find the demand function (price p as a function of units sold x), assuming that it is linear.
P(x) =
(b) If the material for each necklace costs Terry $6, what should the selling price be to maximize his profit?
per necklace
Transcribed Image Text:During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the necklaces for $10 each and his sales averaged 20 per day. When he increased the price by $1, he found that the average decreased by two sales per day. (a) Find the demand function (price p as a function of units sold x), assuming that it is linear. P(x) = (b) If the material for each necklace costs Terry $6, what should the selling price be to maximize his profit? per necklace
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