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GRE
GRE Quantitative Reasoning Section

Sales vs. Expenses Prediction

Hard Algebra Expressions, Equations, And Inequalities

A company has created a model to predict its sales based on the amount spent on advertising. The equation for this model is provided as:

$$ S = 500 + 3A $$

where $$ S $$ represents the predicted sales in dollars and $$ A $$ represents the amount spent on advertising in dollars.

It has been observed that at an advertising expenditure of $$ A = 200 $$, the company also experiences a certain increase in total expenses modeled by the equation:

$$ E = 300 + 1.5A $$

where $$ E $$ represents the total expenses in dollars.

Calculate both the predicted sales and total expenses when the company spends $$ 200 $$ on advertising, and determine the relationship between the predicted sales (Quantity A) and total expenses (Quantity B).

Hint

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