Math Problem Statement

If the revenue function for a particular commodity is R(p) = −53p2 + 68p, what is the (linear) demand function q(p)? q(p) =

Solution

The revenue function is given by:

R(p)=53p2+68pR(p) = -53p^2 + 68p

Revenue R(p)R(p) is the product of the price pp and the quantity demanded q(p)q(p), i.e.,

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

So, to find the demand function q(p)q(p), we can solve for q(p)q(p):

q(p)=R(p)p=53p2+68ppq(p) = \frac{R(p)}{p} = \frac{-53p^2 + 68p}{p}

Simplifying the right-hand side:

q(p)=53p+68q(p) = -53p + 68

Thus, the linear demand function is:

q(p)=53p+68q(p) = -53p + 68

Would you like further clarification or more details on any step?

Here are 5 related questions to deepen your understanding:

  1. What happens to the quantity demanded when the price increases?
  2. How would you calculate the equilibrium price given a cost function?
  3. What is the maximum revenue, and at what price does it occur?
  4. How do you derive the inverse demand function from the demand function?
  5. How does elasticity of demand relate to the demand function?

Tip: The demand function shows the relationship between price and quantity demanded. When it's linear, the slope gives the rate of change in demand relative to price.

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Math Problem Analysis

Mathematical Concepts

Algebra
Revenue Functions
Linear Demand Functions

Formulas

Revenue function: R(p) = p * q(p)
Demand function: q(p) = R(p) / p

Theorems

Linear Functions
Revenue-Demand Relationship

Suitable Grade Level

Grades 10-12