Suppose that the demand for Colin’s kidney pies is linear in the price P. Further, assume that he can sell 100 pies when the price is $5.00 and 40 pies when the price is $10.00.
(a) Determine the demand N (number of pies sold) as a function of the price P (in dollars).
(b) What is the slope of the graph of N(P), including units? Describe what the slope represents.
(c) Determine the revenue R = N × P for prices P = 5, 6, 7, 8, 9, 10 and then choose a price to maximize the revenue.