Question

A store has been selling skateboards at the price of $40 per board, and at this price, skaters have been buying 50 boards a month. The owner of the store wishes to raise the price and estimates that for each $1 increase in price, 3 fewer boards will be sold each month. If each board costs the store $25, at what price should the store sell the boards in order to maximize profit?

Answer 1

Answer:

The store must keep the price of $40 per board to maximize its profit.  

Explanation:

As the decrease in the quantity of boards is more representative than the increase in the price. The store best combination in quantity vs price is given at the initial point

See chart attached