Math Problem Statement

If the revenue function for a particular commodity is R(p) = −57p2 + 66p, what is the (linear) demand function q(p)? q(p) =

Give a reason for your answer.

R = pq

R = q p

R = q − p

R = p q

R = p + q

Solution

The revenue function R(p)R(p) for a commodity is given by:

R(p)=57p2+66pR(p) = -57p^2 + 66p

We know that revenue is the product of price pp and quantity demanded q(p)q(p):

R(p)=pq(p)R(p) = p \cdot q(p)

Thus, the demand function q(p)q(p) can be expressed as:

q(p)=R(p)pq(p) = \frac{R(p)}{p}

Substitute R(p)=57p2+66pR(p) = -57p^2 + 66p into the equation:

q(p)=57p2+66ppq(p) = \frac{-57p^2 + 66p}{p}

Simplifying the right-hand side:

q(p)=57p+66q(p) = -57p + 66

Thus, the demand function is:

q(p)=57p+66q(p) = -57p + 66

Reason:

Revenue is calculated as R(p)=pq(p)R(p) = p \cdot q(p), meaning the demand function is obtained by dividing the revenue function by pp. This results in a linear demand function in terms of pp.

Would you like further details or have any questions?


Here are 5 related questions to expand your understanding:

  1. How is marginal revenue derived from the revenue function?
  2. What happens to demand as the price pp increases, according to this demand function?
  3. How would you find the price elasticity of demand from this function?
  4. What is the significance of the slope in the demand function q(p)=57p+66q(p) = -57p + 66?
  5. How would the revenue function change if demand were elastic?

Tip: The slope of the demand function represents the rate of change in quantity demanded with respect to price changes.

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Math Problem Analysis

Mathematical Concepts

Algebra
Revenue Function
Demand Function
Linear Functions

Formulas

R(p) = p * q(p)
q(p) = R(p) / p

Theorems

Linear Demand Function Theorem
Revenue Function Definition

Suitable Grade Level

College/Advanced High School