Suppose you have a lemonade stand, and when you charge $2 per cup of lemonade you sell 120 cups. But when you raise your price to $3 you only sell 60 cups.
a.Write an equation for the number of cups you sell as a function of the price you charge.
b.Denote "C" for number of cups, and "P" for the price you charge.
c.Assume the function is linear.
Continuing our lemonade stand question:
a.We all know that total revenue (TR) is a function of the price we charged (P) multiplied by the item quantity sold (in our case – Cups), i.e., TR = Price * Cups
b.Please write the equation for your TR by inputting your answer from the function you have calculated in question #2.
c. What price would maximize your TR?