# Answer to Question #71794 in Microeconomics for Olivia

Question #71794

It costs you about $3 to produce a pizza.

Last week you sold 500 pizzas for $12 each.

This week you raised your price and sold 300 pizzas for $16 each.

What price should you be charging? (round to the nearest penny)

Last week you sold 500 pizzas for $12 each.

This week you raised your price and sold 300 pizzas for $16 each.

What price should you be charging? (round to the nearest penny)

Expert's answer

500=a*12+b

300=a*16+b

200=-4a

a=-50

b=1100

Q=-50P+1100

P=0.02Q+22

TR=P*Q=-0.02Q*Q+22Q

MR=-0.04Q+22

3=-0.04Q+22

Q=475

P=12.5

300=a*16+b

200=-4a

a=-50

b=1100

Q=-50P+1100

P=0.02Q+22

TR=P*Q=-0.02Q*Q+22Q

MR=-0.04Q+22

3=-0.04Q+22

Q=475

P=12.5

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## Comments

Assignment Expert12.12.17, 20:23Dear visitor,

please use panel for submitting new questions

Chad Holiday12.12.17, 19:28Imagine you've started a new pizza restaurant. It costs you about $5 to produce a pizza.

Last week you sold 500 pizzas for $10 each.

This week you raised your price and sold 150 pizzas for $16 each.

What price should you be charging? (round to the nearest penny)

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