The owner of an apartment building can rent all 60 apartments if she charges $1,800 per month, but she rents one fewer apartment for each $60 increase in monthly rent. (a) Construct a table that gives the revenue generated if she charges $1,800, $1,860, and $1,920. No. of Apts Rent Total Revenue 60 $1,800 $ $1,860 $ $1,920 $ 59 58 (b) Does her revenue from apartment rentals increase or decrease as she increases the rent from $1,800 to $1,920? O revenue increases O revenue decreases (c) Write an equation that gives the revenue R, from apartment rentals if she makes x increases of $60 in the rent. R(x) = (d) Find the rent she should charge to maximize her revenue. per month
The owner of an apartment building can rent all 60 apartments if she charges $1,800 per month, but she rents one fewer apartment for each $60 increase in monthly rent. (a) Construct a table that gives the revenue generated if she charges $1,800, $1,860, and $1,920. No. of Apts Rent Total Revenue 60 $1,800 $ $1,860 $ $1,920 $ 59 58 (b) Does her revenue from apartment rentals increase or decrease as she increases the rent from $1,800 to $1,920? O revenue increases O revenue decreases (c) Write an equation that gives the revenue R, from apartment rentals if she makes x increases of $60 in the rent. R(x) = (d) Find the rent she should charge to maximize her revenue. per month
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The owner of an apartment building can rent all 60 apartments if she charges $1,800 per month, but she rents one fewer apartment for each $60 increase in monthly rent.
(a) Construct a table that gives the revenue generated if she charges $1,800, $1,860, and $1,920.
No. of Apts
Rent Total Revenue
60
$1,800 $
59
$1,860 $
58
$1,920 $
(b) Does her revenue from apartment rentals increase or decrease as she increases the rent from $1,800 to $1,920?
O revenue increases
O revenue decreases
(c) Write an equation that gives the revenue R, from apartment rentals if she makes x increases of $60 in the rent.
R(x)
=
(d) Find the rent she should charge to maximize her revenue.
$
per month
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For a specific set of data, a trend line can be found. Straight lines are the easiest to draw. We use a calculation application like Excel to compute the trend line and the trend equation for the data when there isn't a linear relationship between the variables.
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