A Store Selling Art Supplies Finds That They Can Sell

question 15

Multiple Choice

A store selling art supplies finds that they can sell x sketch pads each week at a price of p dollars each, according to the formula x = 2,700 - 400 p . What price should they charge if they want to sell at least 300 pads each week?

• A) ; they should charge $6.00 or more per pad.
• B) ; they should charge $4.00 or less per pad.
• C) ; they should charge $6.00 or less per pad.
• D) ; they should charge $6.00 or less per pad.
• E) ; they should charge $4.00 or more per pad.

---

Definitions:

Premium

The amount by which the price of a bond or stock exceeds its principal or par value, or the payment above the risk-free rate made for an insurance policy.

Expiration Date

The date on which an option, futures contract, or other derivative expires and becomes void.

MBI Stock

This term does not seem to reference a commonly recognized financial instrument or concept; it might refer to the stock of a specific company identified by the acronym MBI, but without further context, a detailed definition cannot be provided.

Futures Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a specified price on or before a certain date.