digital camera sales online
digital camera sales online
I need to know how to do these problems. I’m studying for a test! There will be problems like it on the test!!?
1. An electronics store sells about 70 of a new model of digital camera per month at a price of $320 each. For each $20 decrease in price, about 5 more cameras per month are sold. Write a function that models the situation. Then tell how the store can maximize monthly revenue from sales of the camera.
2. An online music store sells about 4000 songs each day when it charges $1 per song. For each $.05 increase in price, about 80 fewer songs per day are sold. Find how the store can maximize daily revenue.
Please try to explain how the problem was done!!!
THANKSS! 
To help, look at this table with 2 points:
Let N = number sold and p = price per unit:
N ….. p
———-
70…. 320
75…. 300
If this is a line then the slope is –20/5 = –4
Thus N = –4p + C, we need to find C. Plug in N=70, p=320
70 = –4(320) + C
70 + 1280 = C
C= 1350.
Thus N = –4p + 1350
Revenue = Price•Number sold = Np
So R(p) = Np = (–4p + 1350)p = –4p² + 1350p and this is what you want to maximize.
Assuming you know a little calculus,
dR(p)/dp = –8p + 1350 set = to zero.
8p = 1350, so p = 1350/8 =
$168.75 is the price that will produce maximum revenue. <<< Answer
You can find out what N and R are by plugging this number into the two equations we found.
You do the second problem similarly.
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