Question: Need help with this. Verify answers with second derivative test Economics A concession stand sells drinks at an event. When the drinks are sold for

 Need help with this. Verify answers with second derivative test Economics

Need help with this. Verify answers with second derivative test

A concession stand sells drinks at an event. When the drinks are

Economics A concession stand sells drinks at an event. When the drinks are sold for $1.50 each, the stand sells approximately 3,000 drinks. When the price is increased to $1.75, the stand only sells about 2,500. (Assume the price equation is linear; i.e. p = mx +b.) It costs the owners $0.40 to make each drink and $1,000 per event to rent the space. (a) Find the price, cost, revenue, and profit functions. b How many cups of lemonade must the stand sell to maximize profit? [1] (c) What is the maximum profit? [0.2] (d) How much should they sell each cup for in order to maximize profit? [0.2]

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