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:

Intermediaries

Entities or individuals that act as a middleman in transactions between buyers and sellers, facilitating trade and potentially adding value.

Dividends

payments made by a corporation to its shareholder members, usually derived from the company's profits.

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governments, entitling them to receive interest and the return of principal.

Present Value

The value today of a future monetary sum or sequence of cash inflows, calculated with a defined return rate.