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The manager of a large apartment complex knows from experience that 120 units will be occupied if the rent is $424 per month. A market
The manager of a large apartment complex knows from experience that 120 units will be occupied if the rent is $424 per month. A market survey suggests that, on the average, one additional unit will remain vacant for each $1 increase in rent. Similarly, one additional unit will be occupied for each $1 decrease in rent. (Round your answers to the nearest unit or cent, but do not round until your final computation.) a. If a is the number of units rented, and p is the rent per unit in dollars, what is the price-demand equation (assuming it is linear)? p(a) = b. What is the monthly revenue function for the manager? R(ac) = c. How many apartment units should be rented to maximize the monthly revenue? Apartment units: d. What is the maximum monthly revenue for the manager? Maximum revenue: $ e. What rent should the manager charge to maximize the monthly revenue? Rent: $ per unit
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