Question

You are in business and have a product that sells for $10 that 1,000 people buy each month You want to make a profit and wonder whether you should raise the price in increments of a dollar For each dollar you raise the price , you lose 100 customersHow many dollars can you increase in price to maximize your profit or should you increase in price at all?

Answer 1

No, you shouldn’t increase in price your profit will only get lower if you increase the price

Answer 2

Based on the attached photo and explanation below, the price should not be increased at all.

How to know when profit is maximized?

Note: See the attached photo for the calculation of Revenues at Different Number of Customers and Prices.

Every other being equal, profit is maximized when revenue is at the maximum,

From the attached photo, it can be seen that revenue is at the maximum or the highest when the price is $10 and the number of customers is 1,000.

Increasing the price in increments of a dollar results in a fall in revenue progressively until it reaches $0.

Therefore, the price should not be increased at all.

Learn more about revenue here: https://brainly.com/question/13383966.

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