Suppose the Weekly Demand for a Product Is Given by

question 24

Multiple Choice

Suppose the weekly demand for a product is given by and the weekly supply before taxation is given by . Find the tax per item that produces maximum tax revenue. Round your answer to the nearest cent. ​

• A) $146.25 tax per item
• B) $132.05 tax per item
• C) $124.80 tax per item
• D) $139.20 tax per item
• E) $117.45 tax per item

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Definitions:

Compounded Monthly

This refers to the method by which interest earnings are calculated on a monthly basis, with each month's interest being added to the principal for the calculation of the next month's interest.

Loan Rate

The interest rate applied to the amount of money borrowed from a lender, typically expressed as an annual percentage rate (APR).

Monthly Payment

The amount that is due every month to repay a loan, typically consisting of both principal and interest components, over a set period.

Mortgage Rate

The interest rate charged on a mortgage loan, determining the cost of borrowing for purchasing real estate.