Question

question
healthy gum demand schedule
price (p) quantity (q)
$1 10
$2 8
$3 6
$4 4
$5 2
the table above shows the demand for gum faced by healthy gum company. determine which price will provide the highest total revenue. what is the maximum revenue at this price?
provide your answer below:
p = $ . maximum revenue = $

Explanation:

Step1: Calculate revenue for $P = 1$

Revenue = Price $\times$ Quantity. So, when $P = 1$ and $Q=10$, Revenue $=1\times10 = 10$.

Step2: Calculate revenue for $P = 2$

When $P = 2$ and $Q = 8$, Revenue $=2\times8=16$.

Step3: Calculate revenue for $P = 3$

When $P = 3$ and $Q = 6$, Revenue $=3\times6 = 18$.

Step4: Calculate revenue for $P = 4$

When $P = 4$ and $Q = 4$, Revenue $=4\times4=16$.

Step5: Calculate revenue for $P = 5$

When $P = 5$ and $Q = 2$, Revenue $=5\times2 = 10$.

Answer:

$P = 3$, Maximum Revenue $= 18$