   Chapter 2.1, Problem 31E Finite Mathematics and Applied Cal...

7th Edition
Stefan Waner + 1 other
ISBN: 9781337274203

Solutions

Chapter
Section Finite Mathematics and Applied Cal...

7th Edition
Stefan Waner + 1 other
ISBN: 9781337274203
Textbook Problem

Revenue The market research department of the Better Baby Buggy Co. predicts that the demand equation for its buggies is given by q = − 0.5 p + 140 , where q is the number of buggies it can sell in a month if the price is $p per buggy. At what price should it sell the buggies to get the largest revenue? What is the largest monthly revenue? [HINT: See Example 3.] To determine To calculate: The price$p

per buggy at which market research department of the better baby buggy should sells its buggies to get the largest revenue. Also calculate the largest monthly revenue. The demand equation for the buggies is,

q=0.5p+140

Explanation

Given Information:

The provided demand equation is:

q=0.5p+140

Formula Used:

The relationship between Revenue and Price is,

Revenue=(Price)(Demand)R(p)=(p)(q)

Calculation:

Consider the given demand equation,

q=0.5p+140

The relationship between Revenue and Price is,

Revenue=(Price)(Demand)R(p)=(p)(q)

Substitute 0.5p+140 for q

in Revenue equation.

R(p)=(p)(q)=p(0.5p+140)=0.5p2+140p

Therefore, the total Revenue R

as a function of the price p

per item for the given demand equation is R(p)=0.5p2+140p.

Consider the given annual income equation, R(p)=0.5p2+140p

Compare the equation R(p)=0.5p2+140p with the standard function f(x)=ax2+bx+c and find the value of a,b and c

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