1. Market research by Delnorte Ltd has revealed that the maximum demand for product R is 50,000 units each year, and that demand will reduce by 50 units for every $1 that the selling price is increased. Based on this information, Delnorte Ltd has calculated that the profit-maximising level of sales for product R for the coming year is 35,000 units. The price at which these units will be sold is:

1. $100
2. $300
3. $500
4. $700