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:
Revenue is the product of the price and the quantity demanded , i.e.,
So, to find the demand function , we can solve for :
Simplifying the right-hand side:
Thus, the linear demand function is:
Would you like further clarification or more details on any step?
Here are 5 related questions to deepen your understanding:
- What happens to the quantity demanded when the price increases?
- How would you calculate the equilibrium price given a cost function?
- What is the maximum revenue, and at what price does it occur?
- How do you derive the inverse demand function from the demand function?
- 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
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