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?During the summer months Terry makes and sells necklaces on the beach. Last summer she
Chapter 4, Problem 68(choose chapter or problem)
During the summer months Terry makes and sells necklaces on the beach. Last summer she sold the necklaces for $10 each and her sales averaged 20 per day. When she increased the price by $1, she found that the average decreased by two sales per day.
(a) Find the demand function, assuming that it is linear.
(b) If the material for each necklace costs $6, what selling price should Terry set to maximize her profit?
Questions & Answers
QUESTION:
During the summer months Terry makes and sells necklaces on the beach. Last summer she sold the necklaces for $10 each and her sales averaged 20 per day. When she increased the price by $1, she found that the average decreased by two sales per day.
(a) Find the demand function, assuming that it is linear.
(b) If the material for each necklace costs $6, what selling price should Terry set to maximize her profit?
ANSWER:
Step 1 of 3
(a)
If the necklace cost is 
Suppose that demand function is 
It is the price per necklace.
It is stated that
