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Suppose you currently own a sugar shack and the only good you sell is maple syrup. From experience, you observe that when you set the
Suppose you currently own a sugar shack and the only good you sell is maple syrup. From experience, you observe that when you set the price of a one-liter bottle of maple syrup at P = $10, you can sell 40 bottles everyday. If you raise the price to P = $12, you can sell 30 bottles only. Suppose you use this information to estimate the linear, "point-slope" demand equation for your maple syrup. Which of the prices below will maximize your total revenue?
a.
$8
b.
$9
c.
$11
d.
$13
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