Answer to Question #235654 in Statistics and Probability for Steve

Question

Suppose the monthly demand for a product is given by 10 100 x p e   where p is the price per unit when x units are sold

(i) What is the total revenue for the commodity?

(ii) What would be the total revenue when30 units were demanded and supplied?

Answer 1

Solution:

Since, given demand function is unclear, we assume, $P(x)=100x-10$

(i) $R(x)=x.P(x)=x(100x-10)=100x^2-10x$

(ii) Put $x=30$

$R(30)=100(30)^2-10 \\=100(900)-10 \\=90000-10 \\=89990$