Question

A certain company’s main source of income is a mobile app. The function h models the company’s annual profit (in millions of dollars) as a function of the price they charge for the app (in dollars).

Answer 1

The graph shows the relationship between the company's profit and the app price.

We can analyze the following statements as follows:

A. The company's profit will be 0 if they don't charge for it:

This statement means that the app price is 0. When the app price is 0 on the graph, the corresponding value of the profit is -10. This means the company makes a loss.

THIS STATEMENT IS FALSE.

B. The company's profit will be 0 if they charge about $1 or about $13 for it.

From checking the graph, we can see that the value of the profit is 0 when the graph is approximately at 1 and 13 on the price axis.

THIS STATEMENT IS TRUE

C. Greater app price relates to smaller profit as long as the app price is less than about 7 dollars:

We can see that the graph increases up till the price is at about 7 dollars. This means that the profit increases with an increase in price until 7 dollars.

THIS STATEMENT IS FALSE

D. Greater app price relates to smaller profit as long as the app price is more than about 7 dollars:

By the explanation from C above, an increase in the price above 7 dollars means a decrease in the profit.

THIS STATEMENT IS TRUE