- #1
Jaimie
- 35
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A store has been selling 200 MP3 players a week at 300$ each. A market survey indicates that for each $10 rebate offered to the buyers, the number of sets sold will increase by 20/week.
a) find the demand function and the revenue function.
b) How large a rebate should the store offer to maximize its revenue?
a) Let n be the # of price increases
Let x be the number of MP3 players
Let p be the price of 1 MP3 player
x= 200 + 20n
x-200/20= 20n/20
1) n=x-200/20
2) d= 300-10n
sub 1 into 2
d(x)= 300-10(x-200/20)
d(x)= 400-x/2
r(x) = xd(x)
= 400 - x^2/2
b) after doing these steps...I am not sure what to do from here.
Can someone explain how to approach this step?
Thank you so much!
a) find the demand function and the revenue function.
b) How large a rebate should the store offer to maximize its revenue?
a) Let n be the # of price increases
Let x be the number of MP3 players
Let p be the price of 1 MP3 player
x= 200 + 20n
x-200/20= 20n/20
1) n=x-200/20
2) d= 300-10n
sub 1 into 2
d(x)= 300-10(x-200/20)
d(x)= 400-x/2
r(x) = xd(x)
= 400 - x^2/2
b) after doing these steps...I am not sure what to do from here.
Can someone explain how to approach this step?
Thank you so much!