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
This is the end of the preview.
Sign up
to
access the rest of the document.
 Spring '08
 DONTKNOW
 Revenue, Cartesian product, Elementary mathematics, demand function, Versor

Click to edit the document details