1) Create a realistic business scenario. Give a brief description of the business and product sold and describe how many units were sold at 2 price points (say regular price or sale price, etc.)
2) Find demand equation based on 2 given price points and amounts sold.
Hint: you can form a linear equation based on 2 points of the form (x, p) or (p, x) where p - selling price of the product and x - number of items sold. Make sure to use appropriate notation (equation should either be in terms of p or x)
3) Find Revenue equation based on demand above.
4) Find either optimal price or number of items sold (based on your set-up) that gives maximum revenue using calculus (make sure to test critical value you find using 1st or 2nd derivative test). What is the maximum revenue?
5) What is the optimal price or number of items sold (find the other variable)? Is the result realistic? Why or why not?