A coffee shop finds that at the price of $3.00, demand for their popular cappuccino drink is 3000 cups a year. They also discovered for every $0.25 decrease in price, demand increases by 200 cappuccinos a year. Which of the following is the price they should charge to maximize their revenue?

Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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### Maximizing Revenue for a Coffee Shop

A coffee shop finds that at the price of $3.00, the demand for their popular cappuccino drink is 3,000 cups per year. They also discovered that for every $0.25 decrease in price, demand increases by 200 cappuccinos per year. 

**Question:**
Which of the following is the price they should charge to maximize their revenue?

**Options:**

- $3.00
- $4.78
- $4.50
- $3.38
Transcribed Image Text:### Maximizing Revenue for a Coffee Shop A coffee shop finds that at the price of $3.00, the demand for their popular cappuccino drink is 3,000 cups per year. They also discovered that for every $0.25 decrease in price, demand increases by 200 cappuccinos per year. **Question:** Which of the following is the price they should charge to maximize their revenue? **Options:** - $3.00 - $4.78 - $4.50 - $3.38
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