Optimization

AP Calculus AB· difficulty 3/5

A shop sells 100100 items at \

<div class="math-block" data-math="10%24%20each.%20For%20each%20%5C"></div> 1$ price increase, sales drop by $5$ items. Maximum revenue?
  • A

    $$1000$

  • B

    $$1250$

  • C

    $$1500$

  • D

    $$1125$

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Explanation

Price p=10+xp = 10 + x, quantity q=1005xq = 100 - 5x. Revenue R=(10+x)(1005x)=1000+50x5x2R = (10+x)(100 - 5x) = 1000 + 50x - 5x^2. R=5010x=0x=5,p=15R' = 50 - 10x = 0 \Rightarrow x = 5, p = 15, q=75q = 75, R=1125R = 1125.

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