Ch 5 discussion project 1) Create a realistic business scenario. Give a brief description of the business and product sold and describe how many units were sold at 2 price points (say regular price or sale price, etc.) 2) Find demand equation based on 2 given price points and amounts sold. Hint: you can form a linear equation based on 2 points of the form (x, p) or (p, x) where p - selling price of the product and x - number of items sold. Make sure to use appropriate notation (equation should either be in terms of p or x) 3) Find Revenue equation based on demand above. 4) Find either optimal price or number of items sold (based on your set-up) that gives maximum revenue using calculus (make sure to test critical value you find using 1st or 2nd derivative test). What is the maximum revenue? 5) What is the optimal price or number of items sold (find the other variable)? Is the result realistic? Why or why not? Grading criteria: The project is worth 20 points and will be graded on the following rubric. Objective/Criteria Description of business Excellent (4 points) Scenario is realistic (not overly simplistic or complicated) and contains correct info Demand equation (4 points) Calculation is correct and correct notation is used Revenue (2 points) Calculation is correct leading to correct equation Finding maximum (4 points) Calculation uses calculus (derivative) to find max and uses test (1st or 2nd derivative to confirm max). Finds p or x and max revenue (6 points) Finds the other variable (correct result) and provides explanation and reasoning if result is realistic Conclusion Meets expectations (2 points) Scenario is overly simplistic (i.e. uses small integer values) or overly complicated, or missing some info (2 points) Calculation is partially correct or uses incorrect notation (say p and x are reversed) (1 point) Set-up is correct but not simplified or leading to incorrect equation Needs Improvement (0 points) Description is missing or unrealistic (numbers do not match to what's expected) (2 points) Calculation does not use calculus or does not use test to confirm maximum. Info missing (does not find both p or x and max revenue) (3 points) Incorrect or missing result for other variable. Explanation or reasoning missing or incomplete (0 points) Calculation is missing or incomplete leading to missing answer(s) (0 points) Calculation is incorrect leading to incorrect equation (0 points) Calculation and equation are incorrect or missing (0 points) Missing Total: 20 points