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10754294

when soft drinks are sold for $1 per bottle approx.

6000 soft drinks are sold when the soft drinks are raised to $1.20 per bottle, the quantity demanded drops to 5600 the initial cost is $5000 and the cost per unit is $.50 assuming that the demand function is linear, what number of bottles and what price per bottle will yield a maximum profit?

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Sec 3.2
1) When soft drinks are sold for $1.00 per bottle at football games, approximately 6000 bottles are
sold. When the price is raised to $1.20 per bottle, the quantity demanded drops to 5600. The initial
cost is $5000 and the cost per unit is $0.50. Assuming that the demand function is linear, what
number of bottles and what price per bottle will yield a maximum profit?
( P - P . ) = M ( x - x . )
P

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