For this case we have that by definition, the line equation of the slope-intersection form is given by:
Where:
m: It's the slope
b: It is the cut-off point with the y axis
According to the statement we have:
Thus, the equation is of the form:
We substitute the given point and find "b":
Finally, the equation is of the form:
Answer:
Answer:
Step-by-step explanation:
Given data
Total units = 250
Current occupants = 223
Rent per unit = 892 slips of Gold-Pressed latinum
Current rent = 892 x 223 =198,916 slips of Gold-Pressed latinum
After increase in the rent, then the rent function becomes
Let us conside 'y' is increased in amount of rent
Then occupants left will be [223 - y]
Rent = [892 + 2y][223 - y] = R[y]
To maximize rent =
Since 'y' comes in negative, the owner must decrease his rent to maximixe profit.
Since there are only 250 units available;
Optimal rent - 838 slips of Gold-Pressed latinum