A restaurant chain sells 220,000 burritos each day when it charges $8.00 per burrito. for each $0.50 increase in price, the restaurant chain sells 10,000 less burritos.

a. how much should the restaurant chain charge to maximize daily revenue

The highest that the store should sell should be at $9.5 per burrito because if they sell at $9.5, then they will get 1,805,000 for a daily revenue (9.5 x 190,000 burritos). If they sell any higher, then their daily revenue will go down. For example, if they sell at $10 a piece, they can only sell 180,000 (as per the rule that for every $0.50 increase in price, they have to lessen their sales volume by 10,000). 10 x 180,000 is 1,800,000 which is their daily revenue if they sell at $10 which is less than what they can get if they sell at $9.5.