Concept explainers
Demand and Profit To generate a profit from its o'Books e-book service, OHaganBooks.com needs to know how the demand for novels depends on the price it charges. During the first month of the service, it was charging $10 per novel and sold 350. Lowering the price to $5.50 per novel had the effect of increasing demand to 620 novels per month.
a. Use the given data to construct a linear demand equation.
b. Use the demand equation you constructed in part (a) to estimate the demand if the price were raised to $15 per novel.
c. Using the information on cost given in Exercise 40, determine which of the three prices ($5.50, $10, and $15) would result in the largest profit, and the size of that profit.
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Chapter 1 Solutions
Finite Mathematics
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