A linear relationship must have a general equation of y = mx + b. The independent variable is the price which is x, and the dependent variable is the demand which is y. Since we have two points, we find the slope.
m = (27 - 21.6) / (14 - 25) = -0.5
Thus, y = -0.5x + b
27 = -0.5(14) + b
b = 34
Equation would be y = -0.5x + 34; Revenue is price times demand or xy. Thus, R = ( -0.5x + 34)x. Simplifying, R = -0.5x^2 + 34x
To find the maximum revenue, we differentiate and equate to zero.
dR/dx = 0 = -x + 34
x = 34
Thus, the wholesale price for chicken should be $34 for maximum revenue.