Posted by **kim** on Friday, October 8, 2010 at 3:32pm.

A new software company wants to start selling DVDs with their product. The manager notices that when the price for a DVD is 20 dollars, the company sells 139 units per week. When the price is 34 dollars, the number of DVDs sold decreases to 91 units per week. Answer the following questions:

A. Assume that the demand curve is linear. Find the demand, q, as a function of price, p.

Answer: q=

B. Write the revenue function, as a function of price. Answer: R(p)=

C. Find the price that maximizes revenue. Hint: you may sketch the graph of the revenue function. Round your answer to the closest dollar.

Answer:

D. Find the maximum revenue, i.e., the revenue that corresponds to your answer for the preceding question. Answer: