What price would they set

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The demand for snoofs is found to be Q = 1000 - 12Ps - 5Pt + 0.4Y, where Ps is the price of snoofs in dollars , Pt is the price of toofs in dollars, Y is income in thousands of dollars and Q is quantity of snoofs in thousands. Currently, Ps =40, Pt = 30, and Y=30. If the Snoof Company wanted to maximize REVENUE, what price would they set? Please use up to two places after the decimal in your calculations.

  • $71.80
  • $43.40
  • $40.00
  • $35.90

What is the answer to this? I thought it was $40, but I am not sure where to go after multiplying each factor (12x40, 5x30, .4X30)?

Reference no: EM132166683

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