A Company Handles an Apartment Building with 50 Units

question 160

Multiple Choice

A company handles an apartment building with 50 units. Experience has shown that if the rent for each of the units is $370 per month, then all of the units will be filled; however, one unit will become vacant for each $10 increase in the monthly rate. If x represents the number of $10 increases, express the revenue R from the building as a function of x. ​

• A)​R(x) = 370+10x
• B)R(x) = (370+10x)(50-x)
• C)R(x) = 50(370+10x)
• D)R(x) = 10(370-10x)(50-x)
• E)R(x) = 50(370-10x)

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at various prices.

Buyers

People or organizations that purchase products or services by paying with currency.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, reflecting profit margins.

Market Equilibrium

The condition in a market where the quantity of a product demanded by consumers equals the quantity supplied by producers, resulting in a stable price.