Am selling widgets. They cost $2 to make. If I price the widgets at $20 each, I can only sell one. If I price them at $1 each, I can sell 20. Assume that demand is a straight line between those points. 1. How many do I sell at $5 each?
2. What is the total cost to make them (cost each times # sold)?
3. What is the total revenue I make from selling them (price I sell each times the
number sold)?
4. What is my profit (revenue-cost)?