SOLUTION: An ice cream company finds that at a price of $3.00 demand is 3500 units. For every $0.10 decrease in price, demand increases by 50 units. Find the price and quantity sold that max

Question 1104103: An ice cream company finds that at a price of $3.00 demand is 3500 units. For every $0.10 decrease in price, demand increases by 50 units. Find the price and quantity sold that maximizes revenue.

Answer by josgarithmetic(39617) (Show Source): You can put this solution on YOUR website!
You can make a data table to help find the price and demand, and form your revenue function; .

Let n be how many increments of $0.10.

PRICE per UNIT     Demand in UNITS
   3                        3500
   3-0.1                  3500+50
   3-2*(0.1)              3500+2(50)
   .
   .
   3-0.1n                3500+50n

You can leave R in its factored form. R is a parabolic function and has a maximum point. Find the ROOTS for R, and the maximum will happen exactly in the middle of the two values of n.

-------find the two n values and identify the value exactly in the middle.

Do that and then finish the rest.
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