Question

A shoe store sells about 200 pairs of a new basketball shoe each month when it charges $60 per pair. For each $1 increase in price, about 2 fewer pairs per month are sold. How much per pair should the store charge to maximize monthly revenue? What is the maximum revenue?

Answer 1

Answer:x = the number of $1 increases in price

Price = ($60 + $1x) = (60+x)

Pairs of shoes (200 - 2x)

You have a quadratic Revenue = (60+x)(200-2x)

The quad max is when x = 20

Therefore they should charge 60+ 20 = $80

Explanation: