Grain co-op, llc and hearty cereals, inc., discuss the terms of a contract for periodic deliveries of corn. grain faxes hearty a
1 answer:
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Answer:
the fastest we could drop your price before your monthly revenue starts to drop is $2,000
Explanation:
Data provided in the question:
Cars sold per month, Q = 70 cars
Price of each car, P = $35,000
Rate of increase in demand, = 4 cars per month
Now,
Revenue, R = Price(P) × Quantity (Q)
Thus,
When monthly revenue starts to drop i.e < 0
⇒ =
< 0
or
⇒ < 0
or
⇒ < 0
or
⇒ < - 140,000
or
< - 2,000
Hence,
the fastest we could drop your price before your monthly revenue starts to drop is $2,000