Question

The price p and quantity x sold of a small television set obeys the demand equation below.
A) How much should be charged for the televisions if there are 90 in stock?
B)What quantity x will maximize revenue? What is the maximum revenue?
C)What price should be charged to maximize revenue?

p=-0.10x+200

Answer 1

The demand equation tells us that if we have x many television sets, we can expect to sell all of them if we sell them at the price p. So part A is really asking you to plug in 90 for x to compute p.

For B, revenue is the total money made, so if you have x items sold at price p each, the total money you make is p*x. Then what should the revenue equation be? Once you have that, can you find the maximum?

Answer 2

p=209?

Answer 3

Almost, but there's a negative sign in front of the 0.10x, so subtract 9 instead of adding.

Answer 4

p=191 but how does that plug in to everything else?

Answer 5

That's all you need for part A, and you don't need it again later.

Answer 6

oh, okay

Answer 7

How do I get the maximum revenue?

Answer 8

We're going to need an equation to find it. Can you come up with the revenue equation?