Question 2 20 pts A carpet cleaning business has 100 custome

Question 2: 20 pts A carpet cleaning business has 100 customers when they charge $125 for a cleaning. Research shows that every $2 reduction in price attracts another 20 customers. Which table represents this situation? Price Customers Revenue 125 100 12,500 14,760 123 120 140 121 16,940 119 160 19,040 Price Customers Revenue 500 12,500 25 10,400 520 S40 8,100 560 5,600 Price Customers Revenue 25 12,500 500 520 11,960

Solution

2) Option A is correct as price increases by 2$ every time and customers increase by 20.

5) 600 students currently paying $400 each

If price is reduced by 20$, 50 more customers get added.

So, Revenues = (400-20x)(600+50x)

R = 240000 + 20000x - 12000x - 1000x^2

R = -1000x^2 + 8000x + 240000

To maximize:

DR/Dx = 0

-2000x + 8000 = 0

x = 4

So, Price should be: 400-20*4 = 320$