Optimization (I believe it's called) word problems

  • #1

Homework Statement


A real estate company owns 180 apartments, which are fully occupied when the rent is $300. The company estimates that for each $10 increase in rent, 5 apartments will become unoccupied. What rent should be charged so that the company will receive the max income?



Homework Equations


x=-b/2a (in ax^2+bx+c)



The Attempt at a Solution


c=cost
a=apartments
d= 10 dollar increase in price

c=300+d
a=180-5d

multiplying those together gets a nonsense negative (can't decrease the price, the apartments are full)
 

Answers and Replies

  • #2
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Homework Statement


A real estate company owns 180 apartments, which are fully occupied when the rent is $300. The company estimates that for each $10 increase in rent, 5 apartments will become unoccupied. What rent should be charged so that the company will receive the max income?



Homework Equations


x=-b/2a (in ax^2+bx+c)



The Attempt at a Solution


c=cost
a=apartments
d= 10 dollar increase in price

c=300+d
a=180-5d

multiplying those together gets a nonsense negative (can't decrease the price, the apartments are full)
Before trying to answer this question, see if you can figure out what the rental income will be for a few sets of values.

For example, what is the total revenue when they charge $300 per apartment?
What is the revenue if they raise the rent by $10?
What is the revenue if they raise the rent by $20?

After you get a feel for how this is working, we'll look at what happens when they raise the rent by $x.
 
  • #3
I all ready know what the answers is. It increases until 330 (30 dollars increase) and then begins to decrease. It's a parabola from 300 to 360. But I just can't find a way beyond trying numbers to solve it
 
  • #5
eumyang
Homework Helper
1,347
10
c=cost
a=apartments
d= 10 dollar increase in price

c=300+d
a=180-5d

multiplying those together gets a nonsense negative (can't decrease the price, the apartments are full)

d isn't defined well, so the 1st equation (bolded) isn't correct. The way you wrote the equations, if d = 10, then a = 130, not 175. You'll need to rework the 1st equation.
 
  • #6
d is a 10 dollar increase. d=10 is a 100 dollar increase
 
  • #7
eumyang
Homework Helper
1,347
10
d is a 10 dollar increase. d=10 is a 100 dollar increase

But when you put d = 10 into the equation
c = 300 + d,
you get c = 310, not 400. :confused:
 
  • #8
so let's call d a one collar increase

so c=300+10d

what's the other equation then
 
  • #9
eumyang
Homework Helper
1,347
10
so let's call d a one collar increase

so c=300+10d

what's the other equation then

I'd rather call d, "the number of $10 increases." So d = 10 means that there are 10 $10 increases, or a total increase of $100. Your 2nd equation (for a) is correct.
 
  • #10
so then how do I fix it to get a reasonable answer
 
  • #11
got it, I hope I understand the other ones now
 

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