Math Problem Statement

In this problem, p is the price per unit in dollars and q is the number of units.

If the weekly demand function is p = 92 − 2q2 and the supply function before taxation is p = 20 + 12q, what tax per item will maximize the total tax revenue? $ /item

Solution

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Math Problem Analysis

Mathematical Concepts

Algebra
Quadratic Equations
Calculus

Formulas

Equilibrium condition: p_demand = p_supply
Quadratic formula: q = (-b ± √(b² - 4ac)) / (2a)
Revenue function: R = t * q

Theorems

Maximizing Revenue using calculus

Suitable Grade Level

Grades 11-12