Max and Maddy charge people to park on their lawn while attending a nearby craft fair.At the current price of $10,seven people park on their lawn.If they raise the price to $15,they know that only five people will want to park on their lawn.Whether they have seven or five cars parked on their lawn does not affect their costs.From this information it follows that
A)they should leave the price at $10.
B)it does not matter if they charge $10 or $15.
C)they would do better charging $15 than $10.
D)they should raise the price even more.

Question

Quizplus · Accepted Answer

This is because at the current price of $10, they are making a total revenue of $70 (7 cars x $10 per car). However, if they raise the price to $15, they will only have five cars park on their lawn, but they will make a total revenue of $75 (5 cars x $15 per car). Therefore, they would do better charging $15 than $10.

Max and Maddy Charge People to Park on Their Lawn