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14 May, 14:44

A shoe store sells about 200 pairs of a new basketball shoe each month when it charges $60 per pair. For each $1 increase in price, about 2 fewer pairs per month are sold. How much per pair should the store charge to maximize monthly revenue? What is the maximum revenue?

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  1. 14 May, 14:57
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    Answer:x = the number of $1 increases in price

    Price = ($60 + $1x) = (60+x)

    Pairs of shoes (200 - 2x)

    You have a quadratic Revenue = (60+x) (200-2x)

    The quad max is when x = 20

    Therefore they should charge 60 + 20 = $80
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