Maximizing Revenue: Using Quadratic Functions to Find the Best Selling Price

The video tutorial explains how to maximize revenue from selling stuffed animals by using the zeros of a quadratic function to graph a parabola. It covers the relationship between selling price and sales volume, showing that increasing the price reduces sales but can increase revenue up to a point. The tutorial demonstrates how to use a polynomial equation to find the optimal price that maximizes revenue, using the concepts of zeros, line of symmetry, and vertex of a parabola. The lesson concludes with a discussion on determining the best selling price for maximum profit.

What is the shape of the graph generated by a quadratic function?

• Circle

• Parabola

• Ellipse

• Hyperbola

How does an increase in the selling price affect the number of stuffed animals sold?

• Decreases sales

• No effect on sales

• Increases sales

• Doubles sales

What happens to the revenue if the price is increased by $1 according to the scenario?

• Revenue doubles

• Revenue increases

• Revenue remains the same

• Revenue decreases

What are the zeros of the quadratic equation in the context of the stuffed animals scenario?

• 10 and 30

• 5 and 15

• 0 and 10

• -10 and 20

What does the line of symmetry represent in the context of the quadratic function?

• The highest point on the graph

• The midpoint between the zeros

• The lowest point on the graph

• The starting point of the graph

What was the disagreement between Jamie and Markella about?

• The market research data

• The cost of production

• The optimal selling price

• The number of animals sold

What is the correct selling price to maximize revenue according to the quadratic model?

• $5

• $10

• $15

• $20