Your underground used-book business is booming. Your policy is to sell all used versions of Calculus and You at the same price (regardless of condition). When you set the price at $10, sales amounted to 101 volumes during the first week of classes. The following semester, you set the price at $30 and sold not a single book. Assuming that the demand for books depends linearly on the price, what price gives you the maximum revenue?
how much per book?
what does the revenue amount to?
how much per book?
what does the revenue amount to?
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Hi,
Points made from (price, # sold) are (10,101) and (30,0). The slope of this line is found by:
101 - 0
----------- = -101/20 = m
10 - 30
y = -101/20(x - 30)
Maximum revenue = -101/20(x - 30)*x
The maximum occurs when the price is set at $15, and the total revenue is $1,136.25.
This comes from finding the maximum value on the graph of this equation on the TI-83.
I hope that helps!! :-)
Points made from (price, # sold) are (10,101) and (30,0). The slope of this line is found by:
101 - 0
----------- = -101/20 = m
10 - 30
y = -101/20(x - 30)
Maximum revenue = -101/20(x - 30)*x
The maximum occurs when the price is set at $15, and the total revenue is $1,136.25.
This comes from finding the maximum value on the graph of this equation on the TI-83.
I hope that helps!! :-)