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    A restaurant's two demands

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    QL = 25PL-3 and Qd = 30Pd-2 where the subscripts "L" and "d" stand for lunch and dinner respectively. Suppose the marginal cost of a lunch equals the marginal cost of a dinner and equals $20. How much should the restaurant charge for lunch, and how much for dinner?

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    Ql = 25Pl - 3 implies that Pl = Ql/25 + 3/25

    Similarly, Qd = 30Pd - 2 implies Pd = Qd/30 + 1/15

    Revenue = price X quantity sold,

    hence Revenue from ...

    Solution Summary

    A restaurant's two demands