Shoe store sells 200 Pairs of shoes a month at $60 per pair. For every $1 increase in price approximately 2 fewer pair of shoes

Question

how much should the shoe store charge to maximize revenue?

Answer 1

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