Question
A) A larger retailer selling mountain bikes has found that for every twenty dollars reduction is price, 2 more bikes are sold per month. The
A) A larger retailer selling mountain bikes has found that for every twenty dollars reduction is price, 2 more bikes are sold per month. The bike usually sells for $950 and at that price, the store sells 50 bikes per month. Find the optimum price to charge in order to maximize revenue. How many bikes are sold at that price? What is the maximum revenue?
B) a store has been selling a popular computer game at the price of $40 per game, and at this price players have been buying 50 units per month. The owner of the store wished to raise the price of the game and estimates that for each $1 increase in price, 3 fewer units will be sold each month. If each unit costs the store $25, at what price should the game be sold to maximize profit?
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