A company is selling an item for ps= Sh.5. Profit is related to selling price p by
2 50000 6250
s p s
P = p −
i) Is the profit an increasing function or a decreasing function when ps = 5?
ii) If the price is changed to Sh.4.75, find whether profit would increase or decrease and find the change in
iii) At what price is the profit maximized?