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Quantitative Methods - expressions for total revenue

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?

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.

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