homework 2/23/2021

Question

1. Suppose you are running a carnival. You are selling hamburgers and sodas. A hamburger is $1.75 and a soda is .75. 
2. You expect to make a total of $117.50 for the day
3. You also plan to sell 120 hamburgers and sodas
4. How many sodas and hamburgers will you sell each? 
5. Suppose you decide to change the price ratio between hamburgers and soda’s so that they produce a more equal consumption of hamburgers and sodas.
6. What would you change the price to for each and why?
7. What would be the new amount of hamburgers and soda each at your price points?

Answer 1

1.75H + .75S = 117.5

H + S = 120

.75H + .75S = .75(120) = 90

H = 27.5 = 27 1/2 hamburgers sold

S= 120-27.5 = 92.5 sodas sold

To equalize the sales, 2H = 120, H = 60 = S

if total revenue = $117.50 then price of hamburgers would be = price of sodas = 117.50/120= 98 cents each