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Demand Equation: Example Problem

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The price p and the quanity x sold of a product obey the demand equation
x = -20p + 500, 0<P<25

a. Express the revenue R as a function of X
b. What is the revenue if 20 units are sold?
c. What quantity x maximizes revenue? What is the maximum revenue?
d. What price should the company charge to maximize revenue?

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Provides steps necessary to answer each of the given questions.

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The price pand the quanity x sold of a product obey the demand equation

x = -20p + 500, 0<P<25

a. Express the revenue R as a function of X
Total ...

Purchase this Solution
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