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According to market research, the number...

According to market research, the number of magzine subscriptions that can be sold can be estimated using this function
`n(p)=(5,000)/(4p-k)`, where n is the number of thousands of subscriptions sold, p is the price in dollars for each individual subscription, and k is some constant. If 250,000 subscriptions were sold at $15 for each subscription, how many subscriptions could be sold if the price were set at $20 for each subscription?

A

`59,000`

B

`75,000`

C

`100,000`

D

`125,000`

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we will follow the given function and the information provided. ### Step 1: Understand the function The function given is: \[ n(p) = \frac{5000}{4p - k} \] where: - \( n \) is the number of thousands of subscriptions sold, - \( p \) is the price in dollars for each subscription, - \( k \) is a constant. ### Step 2: Set up the equation with the known values We know that 250,000 subscriptions were sold at $15 each. Since \( n \) is in thousands, we convert 250,000 to thousands: \[ n = 250 \] Now, substituting \( n \) and \( p \) into the function: \[ 250 = \frac{5000}{4(15) - k} \] ### Step 3: Simplify the equation Calculate \( 4(15) \): \[ 4(15) = 60 \] Now substitute this back into the equation: \[ 250 = \frac{5000}{60 - k} \] ### Step 4: Solve for \( k \) Cross-multiply to solve for \( k \): \[ 250(60 - k) = 5000 \] Expanding the left side: \[ 15000 - 250k = 5000 \] Now, isolate \( k \): \[ 15000 - 5000 = 250k \] \[ 10000 = 250k \] Now divide both sides by 250: \[ k = \frac{10000}{250} = 40 \] ### Step 5: Find the number of subscriptions sold at $20 Now we need to find out how many subscriptions could be sold if the price is set at $20. Substitute \( p = 20 \) and \( k = 40 \) back into the function: \[ n(20) = \frac{5000}{4(20) - 40} \] ### Step 6: Simplify the new equation Calculate \( 4(20) \): \[ 4(20) = 80 \] Now substitute this back into the equation: \[ n(20) = \frac{5000}{80 - 40} \] \[ n(20) = \frac{5000}{40} \] ### Step 7: Calculate \( n(20) \) Now divide: \[ n(20) = 125 \] Since \( n \) is in thousands, the total number of subscriptions sold is: \[ 125 \times 1000 = 125000 \] ### Conclusion Thus, the number of subscriptions that could be sold at $20 each is **125,000**. Therefore, the correct option is **d) 125,000**.
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