Problema Solution
The demand equation for a certain product is given by p = 118 - 0.085 x , where p is the unit price (in dollars) of the product and x is the number of units produced. The total revenue obtained by producing and selling x units is given by R = x p.
Determine prices p that would yield a revenue of 5320 dollars.
Answer provided by our tutors
The demand equation is p = 118 - 0.085*x and revenue is R = x * p thus we have
R = x*(118 - 0.085*x) and R = 5320
We need to find x.
x*(118 - 0.085*x) = 5320
x is the solution of the following quadratic equation
0.085*x^2 - 118*x + 5320 = 0
x1 = $46.6525 approximately
x2 = $1341.58 approximately
The prices $46.6525 approximately and $1341.58 approximately yield revenue of $5320.