The relationship d = 1,000 - 30 p describes what happens to demand(d) as price (

Question

The relationship d = 1,000 - 30 p describes what happens to demand(d) as price (p) as price (p) varies. Here, price can vary between $15 and $30. The cost is $10 per unit. How many units can be sold at the $ 15 price and at the $30 price respectively? 100, 550 450, 900 550, 100 900, 450 None of the above. Consider prices of $ 16, $20, and $24. Among these, which price alternative(s) will maximize total profit? $16 $20 $24 $16 and $20 both $16 and $24 both The expression for total profit is given as 700 p - 30p^2 10,000 p -30p^2 10,000 - 300p 1, 300 P - 30 P^2 - 10,000 None of the above.

Explanation / Answer

8 At p = 15,

d = 1000 - 30*15 = 550

At p = 30,

d = 1000 - 30*30 = 100

Answer: c. 550, 100

9. Total profit is given by:

p*d - c*d = (p - 10)*(1000-30p)

For p = 16, profit = 3120

For p = 20, profit = 4000

For p = 24, profit = 3920

Answer: b. $ 20

10. Total profit = (p - 10)*(1000-30p) = 1300p -30p^2- 10,000

Asnwer: d. 1300p -30p^2- 10,000

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