Question

the graph below gives the revenue, r in dollars, that a news paper will make as a function of the subscription price, p in dollars.
what is the approximate average rate of change, in revenue per unit price, from point a to point b. interpret your answer.

solution:
initial point is:
end point is:
average rate of change =
interpret your answer:

Explanation:

Step1: Identify initial point

Initial point: $A(31.80, 2,528,100)$

Step2: Identify end point

End point: $B(60, 540,000)$

Step3: Calculate average rate of change

Use formula: $\frac{\Delta R}{\Delta p} = \frac{R_2 - R_1}{p_2 - p_1}$
$\frac{540000 - 2528100}{60 - 31.80} = \frac{-1988100}{28.2} = -70500$

Step4: Interpret the result

The negative value means revenue decreases as price rises.

Answer:

The approximate average rate of change is $-70,500$. This means that, on average, for each $1 increase in subscription price from $31.80 to $60, the newspaper's revenue decreases by $70,500.