Questions: Healthy Gum Demand Schedule Price (P) Quantity (Q) 1 10 2 8 3 6 4 4 5 2 The table above shows the demand for gum faced by Healthy Gum Company. Determine which price will provide the highest total revenue. What is the maximum revenue at this price? Provide your answer below: P= , Maximum Revenue =

To determine which price will provide the highest total revenue for Healthy Gum Company, we need to calculate the total revenue at each price point. Total revenue (TR) is calculated as the product of price (P) and quantity (Q).

Let's calculate the total revenue for each price:

1. At \( P = \$1 \): \[ TR = P \times Q = 1 \times 10 = \$10 \]

2. At \( P = \$2 \): \[ TR = P \times Q = 2 \times 8 = \$16 \]

3. At \( P = \$3 \): \[ TR = P \times Q = 3 \times 6 = \$18 \]

4. At \( P = \$4 \): \[ TR = P \times Q = 4 \times 4 = \$16 \]

5. At \( P = \$5 \): \[ TR = P \times Q = 5 \times 2 = \$10 \]

From these calculations, we can see that the highest total revenue is achieved at \( P = \$3 \) with a total revenue of \( \$18 \).

The answer is \( P = \$3 \).

Total revenue is \( \$10 \).

Total revenue is \( \$16 \).

Total revenue is \( \$18 \).

Total revenue is \( \$16 \).

Total revenue is \( \$10 \).

Therefore, the price that provides the highest total revenue is \( P = \$3 \), and the maximum revenue at this price is \( \$18 \).