Question

A hot dog vendor at a local fair averages 140 hot dogs per day when the price is $3. If for every $0.25 increase in the price, 10 fewer hot dogs are sold on average, what price maximizes the revenue?

$4.25
$5.75
$3.75
$3.25

Answer 1

I think it is $3.25

Explanation:

140*3=420- original price with 140 sold each day

130*3.25=422.5- 10 less hotdogs sold with $0.25 price increase

110*3.75=412.5- 30 less hotdogs sold with $0.75 price increase

90*4.25=391.5- 50 less hotdogs sold with $1.25 price increase

60*5.75=345-80 less hotdogs sold with $2.75 price increase