Annie's Apple Butter sells for $12 per jar. At that price, they sell 13,000 jars per month. To see if the price is too high or too low, Annie raises the price to $18. At the higher price, they sell only 10,000 jars per month. Assume the Demand function for Annie's Apple butter is a linear equation containing these two points (price, quantity). Use elasticity of Demand to determine the price that Annie should charge for a jar of Apple butter in order to maximize revenue. Round your answer to the nearest cent

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
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Chapter4: Systems Of Linear Equations
Section4.3: Solve Mixture Applications With Systems Of Equations
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Annie's Apple Butter sells for $12 per jar. At that price, they sell 13,000 jars per month. To see if the price is too high or too low, Annie raises the price to $18. At the higher price, they sell only 10,000 jars per month.

Assume the Demand function for Annie's Apple butter is a linear equation containing these two points (price, quantity).

Use elasticity of Demand to determine the price that Annie should charge for a jar of Apple butter in order to maximize revenue. Round your answer to the nearest cent.

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