The graph below shows a typical response to advertising. After an amount a is sp

Question

The graph below shows a typical response to advertising. After an amount a is spent on advertising, the company sells n units of a product. Rodney's Rock Shop determines that the number of rocks sold depends on the amount spent on advertising as shown below. Choose the answer below which best explains what is true about the point P. At the point P, a small increase in the number of rocks sold will yield the greatest increase in the amount spent on advertising. At the point P, a small increase in the amount spent on advertising will yield the greatest increase in the number of rocks sold. The amount spent on advertising is the greatest at the point P. The number of rocks sold is the greatest at the point P.

Explanation / Answer

Slope of the graph gives, rate of increase of roxks sold per unit amount spent
before point p, this slope is increasing and after point p, slope is decreasing
a) is wrong Number is greatest at end point
b) is correct
c) is wrong . Amount is greatest at the end point
d) is wrong . Number is greatest at end point

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