Find the Price That Maximizes the Profit If the Demand

Multiple Choice

Find the price that maximizes the profit if the demand for a product varies from 1,000 at a price of $7 each to 7,000 at a price of $1 each. Also, 5,000 could be supplied at a price of $9 each, whereas only 3,000 could be supplied for $5 each. The graph for this supply-demand problem is given below.

A) $11
B) $5
C) $4
D) $8
E) $10