posted by linda on .
A band can sell 80 CDs at concert if they sell the Cds for $12 each. For every $1 increase in the price, they will sell 5 fewer Cds. Determine the price for a CD that will maximize the band's revenue.
Let x be the price.
The number sold is
N = 80 - 5(x -12)= 140 -5x.
The revenue is 140x -5x^2 dollars.
Try completing the square, since you probably don't know how to use differential calculus yet. Maximum revenue ($980) is at a price where
140 - 10x = 0
x = $14
At a price of $13 or $15, the revenue is $975.
is $14 by completing the square