posted by Anonymous .
I was wondering if someone could help me with this.
TR = Total Revenue
Price ($) Quantity
Total Revenue = P X Q
We assume a linear relationship.
They said that they know the demand curve is Q = 700 - 100P
How did they get that? Do you have to do a graph to figure that out? How do you get that based on looking at the data?
Thanks in advance.
Draw a graph and you will see that it is true. Each drop in price (P) of one unit results in an increase in quantity (Q) of 100.