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    Quantitative Methods - expressions for total revenue

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    The relationship d = 5000 - 25p describes what happens to demand (d) as price (p) varies. Here, price can vary between $10 and $50.

    a. How many units can be sold at the $10 price? How many can be sold at the $50 price?
    b. Model the expression for total revenue.
    c. Consider prices of $20, $30, and $40. Which price alternative will maximize total revenue? What are the values for demand and revenue at this price?

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    Solution Preview

    d = 5000 - 25p

    This equation describes the relationship between price and demand.

    (a) How many units can be sold at the $10 price?

    If the price, p = $10, then demand,

    d = 5000 - 25(10) = 4750

    How many can be sold at the ...

    Solution Summary

    Quantitative Methods are demonstrated.