For plotting the demand curve and total revenue curve from the Scenario 1 I

For plotting the demand curve and total revenue curve

This preview shows page 5 - 8 out of 8 pages.

For plotting the demand curve and total revenue curve from the Scenario 1, I have taken multiple prices and subsequently got the quantity demanded from the equation and Total revenue from the equation that I have got Below is the equation for quantity demanded from Scenario 1: D= 25,499.568 136.617*op where op = Owner Price Below is the equation for Total Revenue from Scenario 1: TR = op * D Below are the set of data’s that I have considered while plotting the demand curve and total revenue curve: Price Quantity_Demanded Total_Revenue 91 13067.421 1189135.311 92 12930.804 1189633.968 93 12794.187 1189859.391 94 12657.57 1189811.58 95 12520.953 1189490.535 96 12384.336 1188896.256 97 12247.719 1188028.743 98 12111.102 1186887.996 99 11974.485 1185474.015 100 11837.868 1183786.8
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Please find below the Demand curve graph: Please find below the Total Revenue curve graph: Total revenue increases when price increases. But after the optimal price i.e. in this case 93.33 , the Total revenue has started decreasing. 90 91 92 93 94 95 96 97 98 99 100 101 11600 11800 12000 12200 12400 12600 12800 13000 13200 Price 1183000 1184000 1185000 1186000 1187000 1188000 1189000 1190000 1191000 11600 11800 12000 12200 12400 12600 12800 13000 13200 Total_Revenue
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For plotting the demand curve and total revenue curve from the Scenario 2 , I have followed the same method that I have followed in Scenario1 but I have put the price in other demand function that I have got from scenario 2 and correspondingly found out the TR. Below is the equation for quantity demanded from Scenario 2: D= 26,267.885599 136.617*op where op = Owner Price Below is the equation for Total Revenue from Scenario 1: TR = op * D Below are the set of data’s that I have considered while plotting the demand curve and total revenue curve: Price Quantity_Demanded Total Revenue 91 13835.7386 1259052.213 92 13699.1216 1260319.187 93 13562.5046 1261312.928 94 13425.8876 1262033.434 95 13289.2706 1262480.707 96 13152.6536 1262654.746 97 13016.0366 1262555.55 98 12879.4196 1262183.121 99 12742.8026 1261537.457 100 12606.1856 1260618.56
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Please find below the Demand curve graph: Please find below the Total Revenue Curve: From the above demand curve graph we can see that by increasing the Compe_Price by 6%, the demand curve shifts right and for the total revenue curve , total revenue increased when price increases but after optimal price i.e. in this case 96.14 , total revenue starts decreasing. 90 91 92 93 94 95 96 97 98 99 100 101 12400 12600 12800 13000 13200 13400 13600 13800 14000 Price 1258500 1259000 1259500 1260000 1260500 1261000 1261500 1262000 1262500 1263000 12400 12600 12800 13000 13200 13400 13600 13800 14000 Total Revenue
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