Question

Jack Hardware sold 8 pounds of bolts yesterday at a price of $5,.00 per pound. This point is represented by the black plus symbol on the diagram below, which plots the price of bolts (measured in dollars, per pound) and the quantity sold (measured in pounds).

Each small square in the grid for this graph has one side equal to 1 pound of bolts and one side equal to 1 dollar per pound. The area of one small square is therefore _______ .

There are _______ small squares in the purple shaded rectangle 

On this graph, the area of the purple rectangle corresponds to: 

• Jack Hardware's revenue from selling bolts, measured in dollars 

• The price of the bolts, measured in dollars per pound 

• The number of bolts that Jack Hardware sold, measured in pounds 

• None of these-the area has no meaning 

Now suppose Jack Hardware lowers its price to $8.00 per pound of screws. As a result, it now sells 5 pounds of bolts. 

Use the blue rectangle to draw the area that corresponds to the new price and quantity 

Did lowering the price of bolts increase Jack Hardware's revenue? 

Answer 1

Area of a particular dimension is measured by calculating its length and breath. The formula to calculate are of a square will be = length of the square x breath of the square

                                    In this case, the square has one of its sides (the side that measures the amount of pound) equal to 1 unit. It also has the other side (the side which measures the price per unit of pound of screws) equal to 1 $.

Hence, the Area of the Square = Length x breath

                                                                                            = 1 x 1 units

                                                                                            = 1 square units.

Therefore, each small square in the gold for this graph has one side equal to 1 pound and one side equal to 1 dollar per pound. The area of one small square is therefore 1 square unit.

To find out the number of squares in the purple shared rectangle, we need to multiply the number of total pounds sound (which is 8 ) by the price per pound ( $ 5) .

Hence, total number of squares = 8 x 5

                                                                             = 40 squares.

Therefore, there are 40 small squares in the purple shaded rectangle.

  

Since, Jack Hardware sold a particular quantity of a product at a particular price, the income or return he generated as a return against his sell, is regarded as his revenue. Here, Jack sold 8 pounds of screws at $5 per pound. Therefore, his total revenue from the sell is = 8 x 5 = $ 40.

Therefore, on this graph, the area of the purple rectangle corresponds to: Jack Hardware’s revenue from selling the screws , measured in dollars.

Let us draw below the new area that will now represent Jack's new price and quantity equation.

Shaded forton 个 Neu Price& Qu 殳 2- /o SCREWS (pounds) う

As seen from the above graph, the Shared portion represents the new Price and Quantity when Jack now sells the screws at $ 8 per pound and hence is able to sell only 5 pounds of screws.

Although Jack has raised the price of the screws, but his total product sell has decreased too. We can calculate Jack's total revenue as below .

Revenue = Total quantity sold x Price per quantity

= 8 x $ 5

= $ 40

Hence, Jack's total revenue has not changed from the increase in the price of the screws.

Therefore, the answer is NO , raising the price of screws did not increase Jack Hardware's revenue.