Answer:
- If Kristin does not decrease the price of her cakes,her projected weekly revenue from cake sales will be $ 2500.
Since if she is not decreasing her price that means the point will be on the Revenue axis.
and the point is 2500.
Hence, the statement is True.
- If Kristin decreases the price of her cakes, her projected weekly revenue will also decrease.
This statement is False as while decreasing the price from $ 2 to $ 3 the revenue remains same.
- If Kristin decreases the price of her cake by $ 1, her projected weekly revenue will be $ 2520.
This statement is True.
Since when there is a decrease in $ 1 this means that 5 cakes increases and price per cake is $ 24.
i.e. 105 cakes are being sold at a rate of $ 24 each.
Hence, the total revenue is:
24×105=$ 2520.
- Kristin should decrease the price of her cake by $ 3 ,in order to obtain the maximum weekly revenue.
This statement is False.
Since, the maximum revenue is obtained when there is no decrease.
- Kristin will receive the same revenue if she sells the cake for $ 24 or $ 21.
This statement is True.
Since when she sells for $ 24 each she has to sell 105 cakes.
so, revenue obtained is:
24×105=$ 2520.
When she sells for $ 21, she has to sell 120 cakes and the revenue obtained is:
20×120=$ 2520.