Sale managers normally want to increase revenue R by selling more. For example, a manager may know by experience that revenue R will increase or decrease according to the following mathematical linear model for a a sales price P and quantity sold Q of a certain commodity:
P=Po +-px [This represents a linear equation with positive or negative slope]
Q=Qo+-qx [This represents a linear equation with positive or negative slope]
In other words, "q" more(+) or less(-) units per month can be sold if the price is decreased(-)/increased(+) by $"p" in multiples of 1, 2, ..or "x". The slopes "p" and "q" are different for different commodoties.
Problem 1S (Sales Revenue Problem)
The owner of an apartment complex knows he can rent all 50 apartments when the monthly rent is $400. He thinks that for each $25 increase in the rent, he will loose two tenants. He would be happy with revenue of $20,400 per month.
? Write an expression for the price P
? Write an expression for the number of apartments Q that can be rented a price P
? Write an equation that relates the revenue to the price and number of apartments.
Please see attachment (questions also in attachment)