Point 3 — Getting maximum/minimum revenue

What do we see?

A case study with a number of units and a price.

What do we understand?

Start with the basic revenue — the initial number of units times the initial price. Then see the pattern for one or two specific values and generalise.

Question 1 of 2

Heather is selling homemade croissants for the school bake sale which happens every month. From her experience from last year, Heather predicts that for each $1 increase in croissant price, she will sell 2 fewer croissants. At the current price of $5 per croissant, an average of 90 croissants will be sold. What should be the price of each croissant, so Heather can earn maximum revenue? (Assuming she only raises the price by units of $1.)