Question

A bookstore is deciding what price it should charge for a certain book. After research, the store finds that if the book's price is p dollars (where p <= 40), then the number of books sold per month is 120-3p. What price should the store charge to maximize its revenue?

Answer 1

The store charge that has to be charged should be 20$

How to solve for the charge

First we have to solve for revenue

Revenue = Price x quantity

= p * 120-3p

= 120p - 3p²

The maximum revenue is at the point where p =   - b/2a

Hence we have

-120/2 *-3

= -120/-6

= $20

Hence the amount that has to be charged by the store should be $20

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