Kristin owns a bakery called Kristin's Cakes n' Such and is considering lowering the price of her cakes. Kristin polls her customers and determines that she can sell 100 cakes each week when she charges $25 each. She also discovers that for every $1 decrease in the price of the cake, she will sell 5 more cakes. The graph below represents Kristin's projected weekly revenue for each decrease in price.
2800
2600 point one starts at(2.5, 2531.25)
2400
2200
2000
1800
1600
1400
1200
1000
800
600
400
200
0
Revenue (in dollars)
10
20
point 2 decreased to(25, 0)
30
40
Decrease in Price (in dollars)
Based on the information provided in the graph, we can see that as Kristin decreases the price of her cakes, her weekly revenue also decreases. Initially, when the price is $25, her revenue is the highest at $2800.
As she decreases the price to $24, her revenue decreases to $2531.25. This trend continues as the price decreases further.
Therefore, based on the graph, it would not be a good idea for Kristin to lower the price of her cakes as it would ultimately result in lower overall revenue for her bakery.