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
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