Question

new tech start-up is trying to sell their app through the various app stores. oking at similar apps already on the market, they have created a sales demand aph (shown below). The intercepts mean that at $0 they would expect to sell ,000 copies of their app, but would sell none if they charged $5.

Answer 1

4a. p is Price. U is units sold. S is sales. Sales is Uxp so S=(10000-2000p)xU which means S=10000p-2000p^2

4b. C=2000+.1U so plug in U and you get C=2000+.1(10000-2000p) which means C=3000-200p

4C. Profit which is P is sales minus cost so P=10000p-2000p^2-(3000-200p) which means P=-2000p^2 + 10200p - 3000

4d. We need to find the vertex. The x value is given by -b/2a so we do -10200/-4000 which is 2.55. We would then plug that x into the profit equation to get our Y. Plugging it in you get 10005. They should sell their app for $10005