Math Problem Statement

The price p (in dollars) and the quantity x sold of a certain product satisfy the demand equation x = -5p + 200. Answer parts (a) through (g).

Solution

The question asks for solving various parts related to the demand equation, which is given as:

x=5p+200x = -5p + 200

Where:

  • pp is the price in dollars.
  • xx is the quantity sold of a certain product.

Let's analyze each part of the problem:

(a) Find a model that expresses the revenue RR as a function of pp.

We know that revenue RR is given by the formula:

R=p×xR = p \times x

Substitute x=5p+200x = -5p + 200 into this equation:

R(p)=p×(5p+200)R(p) = p \times (-5p + 200)

Simplify this:

R(p)=5p2+200pR(p) = -5p^2 + 200p

This is the revenue function in terms of pp.

(b) What is the domain of RR, assuming that R0R \geq 0?

To find the domain, we ensure the revenue is nonnegative, i.e., R(p)0R(p) \geq 0.

We already have:

R(p)=5p2+200pR(p) = -5p^2 + 200p

This is a quadratic equation, and the revenue will be non-negative between the roots of the equation:

5p2+200p=0-5p^2 + 200p = 0

Factor this equation:

p(5p+200)=0p(-5p + 200) = 0

So, p=0p = 0 or p=40p = 40.

Therefore, the domain is 0p400 \leq p \leq 40.

(c) What price pp maximizes revenue?

Since the revenue function is quadratic and opens downward (as the coefficient of p2p^2 is negative), the price that maximizes revenue is at the vertex of the parabola. The formula for the vertex is:

p=b2ap = -\frac{b}{2a}

For R(p)=5p2+200pR(p) = -5p^2 + 200p, a=5a = -5 and b=200b = 200. Substituting into the vertex formula:

p=2002(5)=20p = -\frac{200}{2(-5)} = 20

Thus, the price that maximizes revenue is p=20p = 20.

(d) What is the maximum revenue?

To find the maximum revenue, substitute p=20p = 20 into the revenue function:

R(20)=5(20)2+200(20)R(20) = -5(20)^2 + 200(20) R(20)=5(400)+4000=2000+4000=2000R(20) = -5(400) + 4000 = -2000 + 4000 = 2000

The maximum revenue is R=2000R = 2000.

(e) How many units are sold at this price?

We use the demand equation x=5p+200x = -5p + 200 and substitute p=20p = 20:

x=5(20)+200=100+200=100x = -5(20) + 200 = -100 + 200 = 100

So, 100 units are sold at this price.

(f) Graph RR and choose the correct graph.

The revenue function R(p)=5p2+200pR(p) = -5p^2 + 200p is a downward-opening parabola. Based on the calculated maximum at p=20p = 20 and R=2000R = 2000, the correct graph is D.

Would you like more details on any part of this solution?

Here are five related questions:

  1. How do you calculate the roots of a quadratic function?
  2. What happens to the revenue if the price increases beyond the maximum?
  3. How can you find the vertex of a parabola algebraically?
  4. How do we interpret the negative coefficient of p2p^2 in the revenue function?
  5. What other factors can affect the domain of a revenue function?

Tip: When solving quadratic functions, always check if the parabola opens upwards or downwards, as this determines whether the vertex is a maximum or minimum.

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Math Problem Analysis

Mathematical Concepts

Revenue Function
Demand Equation
Quadratic Functions
Maximization

Formulas

R = p × x
x = -5p + 200
Vertex formula: p = -b / (2a)
Quadratic equation: ax^2 + bx + c = 0

Theorems

Quadratic Formula
Maximization using Vertex of a Parabola

Suitable Grade Level

Grades 9-11