is independent of price (i.e., volume remains constant, regardless of the price of the product).

It would be
more realistic for the demand to vary as price increased or decreased. For our Western Clothing
Company example from Chapter 1, let us suppose that the dependency of demand on price is defined by
the following linear function:
This linear relationship is illustrated in Figure 10.1. The figure illustrates the fact that as price increases,
demand decreases, up to a particular price level ($60.98) that will result in no sales volume.
Figure 10.1 Linear relationship of volume to price

Now we will insert our new relationship for volume (v) into our original profit equation:
Substituting values for fixed cost (cf = $10,000) and variable cost (c v = $8) into this new profit function
results in the following equation:
Because of the squared term, this equation for profit is now a nonlinear, or quadratic, function that relates
profit to price, as shown in Figure 10.2.

Figure 10.2 The nonlinear profit function

In Figure 10.2, the greatest profit will occur at the point where the profit curve is at its highest. At that
point the slope of the curve will equal zero, as shown in Figure 10.3.
Figure 10.3 Maximum profit for the profit function