Question 57·Hard·Nonlinear Functions
A technology startup models its daily revenue, in thousands of dollars, from selling a new subscription service with the function
where is the price, in dollars, of one subscription and . For what price will the daily revenue be maximized?
(Express the answer as an integer)
For SAT questions asking you to maximize or minimize a function on a closed interval, use your graphing calculator. Graph the function, restrict your view to the given interval, and use the maximum/minimum feature to find the peak or valley. Always check the endpoint values too, since the maximum or minimum could occur there. This graphical approach is fast and reliable on the SAT.
Hints
Focus on what is being maximized
You are not asked for the maximum revenue itself, but for the price (between 4 and 10) that makes as large as possible.
Use your graphing calculator
Graph the revenue function and look for the highest point on the curve between and .
Check the endpoints and the peak
For a function on a closed interval like , the maximum occurs either at an endpoint or at a turning point. Check , , and any peaks you see on the graph.
Desmos Guide
Enter the revenue function
In Desmos, type the function using as the variable:
R(x) = -1/2 * (x - 4)^2 * (x - 10) + 32
This will graph the revenue versus the price.
Focus on the correct domain
Adjust the x-axis so you can clearly see from to . Adjust the y-axis so that all relevant revenue values are visible (for example, 0 to 60).
Find the maximum on the interval
Click on the graph near its highest point between and . Desmos will show the coordinates. The x-coordinate of this highest point is the price that maximizes the daily revenue.
Step-by-step Explanation
Understand the goal and the domain
The function
gives the daily revenue (in thousands of dollars) when the price is dollars, with .
We want the price in this interval that makes as large as possible.
Check the endpoint values
First, evaluate the revenue at the endpoints of the interval:
- At : , so .
- At : , so .
Both endpoints give the same revenue of 32 thousand dollars.
Find the maximum using a graphing calculator
Graph in Desmos. Looking at the graph between and , you can see the curve rises above 32 and has a peak somewhere in the middle.
Use Desmos's maximum feature or click on the highest point of the curve. You'll find the maximum occurs at .
Verify and state the answer
At :
Since , the maximum revenue of 48 thousand dollars occurs when .
The daily revenue is maximized when the subscription price is 8 dollars.