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Revenue_Functions_from_a_Demand_Function - Obtaining a...

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Obtaining a Revenue Functions from a Demand Function October 28, 2009 Obtaining a Revenue Functions from a Demand Function Given: Demand Function q = -4p + 10 In function notation, write the function as D(p) = -4p + 10 q = Quantity, number of units (“x” is also used to represent quantity) p = price per unit “p” is the independent variable – graphs on the horizontal axis “q” is the dependent variable – graphs on the vertical axis A demand function represents the activities of the consumer – it shows the relationship between price per unit and quantity a consumer purchases. The demand function has a negative slope (As the price goes down, consumers usually buy more of the item. There is an indirect relationship between price and quantity.) A. Sketch the Demand Function q = -4p + 10 q ($0, 10 units) ● ($2.50, 0 units ) Price per unit = p Domain: [(0, $2.50] B. Rewrite the demand function so that “q” is the independent variable. Graph. q = -4p + 10
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