Question: A store has been selling 4 0 0 TV monitors a week at ( $ 4 5 0 ) each. A market
A store has been selling TV monitors a week at $ each. A market survey indicates that for each $ rebate offered to buyers, the number of monitors sold will increase by a week. Find the demand function and the revenue function. How large a rebate should the store offer to maximize its revenue? Solution If x is the number of monitors sold per week, then the weekly increase in sales is For each increase of units sold, the price is decreased by $ So for each additional unit sold, the decrease in price will be fractimes and the demand function is
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