Question

A company has determined that if the price of an item is $40, then 150 will be demanded by consumers. When the price is increased by $5, then items demanded by customers decreases by 50 . Write an equation representing revenue, f(x), for every adjustment to price, x.

Answer 1

To write an equation representing revenue for each adjustment to price, we can use the given information about the relationship between price and quantity demanded. The equation representing revenue, f(x), is calculated as (40 + x) * (150 - 50x)

Step-by-step explanation:

To write an equation representing revenue for each adjustment to price, we need to consider the relationship between price and quantity demanded. Based on the given information, we know that when the price is $40, 150 items will be demanded. When the price is increased by $5, the quantity demanded decreases by 50.

Let's define x as the adjustment to the price from the base price of $40. When the price is $40 + x, the quantity demanded is 150 - 50x. Therefore, the equation representing revenue, f(x), is calculated as:

f(x) = (40 + x) * (150 - 50x)