Problem

Revenue changes from $\$200$ to $\$260$ while price changes from $\$5$ to $\$8$. Compute the average rate as change in revenue divided by change in price, keep the sign, state revenue-dollars per price-dollar units, and interpret the result.

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What this problem is really about

In a contextual rate, identifying which quantity is the output and which is the input determines both the quotient order and its units. We’ll pair the revenue and price endpoints, compute consistent signed changes, and interpret output dollars per input dollar as an interval summary.

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(260−200)/(8−5)=60/3=20; revenue increases by $20 per $1 price increase.

(8−5)/(260−200)=3/60=0.05; price increases by $0.05 per revenue dollar.

260/8=32.5; revenue increases by $32.50 per $1 price.

(200−260)/(8−5)=−60/3=−20; revenue decreases by $20 per $1 price increase.

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Revenue changes from \(\$200\) to \(\$260\) while price changes from \(\$5\) to \(\$8\). Compute the average rate as change in revenue divided by change in price, keep the sign, state revenue-dollars per price-dollar units, and interpret the result.

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