Problem 803

A deli sells 640 sandwiches per day at a price of 8 each.  A)    A market survey should that for every0.10 reduction in the price, 20 more sandwiches will be sold. How much should the deli charge in order to maximize revenue?

B)    A different market survey shows that for every 0.20 reduction in the original8 price, 10 more sandwiches will be sold. Now how should the deli charge in order to maximize revenue?

 

Solution:-

 

A)    The deli should charge 5.6 for a sandwich to maximize revenue.  B)    Now the deli should charge8 for a sandwich to maximize revenue.

 

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