Business Mathematics 2

[mathdad]

The price p and quantity x sold of a small flat screen television set obeys the demand equation p = -0.14x + 280.

A. How much should be charged for the television set if there are 60 television sets in stock?
Round to the nearest cent.

p = -0.14(60) + 280

p = -8.4 + 280

p = 271.60 dollars


B. What quantity x will maximize revenue?

R = quantity * price

R(x) = x(-.14x+280)
R(x) -0.14x^2 + 280x

I gotta use x = -b/(2a).

x = -(280)/2(-0.14)

x = -280/-0.28

x = 280/0.28

x = 1000

C. What is the maximum revenue?

R(1000) = -0.14(1000^2) + 280(1000)

R(1000) = 140,000 dollars

D. What price should be charged in order to maximize revenue?

I gotta use the demand equation.

p = -0.14x + 280

p = -0.14(1000) + 280

p = -140 + 280

p = 140 dollars

Yes?

 

[Steven G]

Part A is a poorly worded question in my opinion. It does not say to find the price so you sell ALL the sets. It does not say to find the max revenue if you have 60 sets. If it is to find the max revenue then it is possible that p(60) is not the correct answer.

You did find p(60) correctly
All the others seem fine.
Good job.

 

[mathdad]

Part A is a poorly worded question in my opinion. It does not say to find the price so you sell ALL the sets. It does not say to find the max revenue if you have 60 sets. If it is to find the max revenue then it is possible that p(60) is not the correct answer.

You did find p(60) correctly
All the others seem fine.
Good job.

This question came from the internet not the Sullivan textbook.