Question

What rebate in price of the calculator should the store give to maximise the revenue?

Hint:

For pricing and revenue problems, calculate the optimal price after determining the maximum quantity sold.

Answer 1

Step 1: Calculate the price at \( x = 450 \)
The price is given by: \[ p = 450 - \frac{x}{2} = 450 - \frac{450}{2} = 225. \] Step 2: Compute the rebate
The original price is Rs. 350. The rebate is: \[ \text{Rebate} = 350 - 225 = 125 \, \text{(Rs. per calculator)}. \] Step 3: Final result
The rebate required to maximise the revenue is Rs. 125 per calculator.