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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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This note was uploaded on 11/13/2011 for the course ACCT 101 taught by Professor Dontknow during the Spring '08 term at Central Washington University.
 Spring '08
 DONTKNOW
 Revenue

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