Question

An online shopping club has 11,200 members when it charges $7 per month for membership. For each $1 monthly

Answer 1

Answer:

Monthly revenue = R(x) = (11,200 - 400x) * (7 + x)

Step-by-step explanation:

Monthly revenue = Number of members * Monthly fee ......... (1)

Where;

Number of members = 11,200

Monthly fee = $7

For each $1 monthly increase in membership fee, we have

For 1 month, one dollar the decrease = 400 * 1 = 400

For 2 months, 2 dollar increase will lead to decrease of 400* 2 = 800 members

Therefore, for x months

Innrease in membeship fee or price increase = 7 + x

Decrease in the numbers of members = 400x

Substitute the values into equation (1), we have:

Monthly revenue = R(x) = (11,200 - 400x) * (7 + x)