The Better Baby Buggy Co $q = - 4 x + 220$

question 7

Multiple Choice

The Better Baby Buggy Co. has just come out with a new model, the Turbo. The market research department predicts that the demand equation for Turbos is given by
$q = - 4 x + 220$
where q is the number of buggies it can sell in one month if the price is $x per buggy. At what price should it sell the buggies to get the largest revenue Round the result to the nearest dollar.

• A)$14
• B) $110
• C) $28
• D) $128
• E) $3,025

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Definitions:

Loanable Funds

The money available for borrowing; the market wherein savers supply funds to borrowers, typically through financial intermediaries.

Interest Rates

The rate at which a borrower is charged interest for borrowing money from a lender.

Perpetuity

An annuity in which the periodic payments begin on a fixed date and continue indefinitely.

Long-Term Bonds

Debt securities with a maturity of more than 10 years, offering periodic interest payments.