given the revenue eqn R(p) =-0.08p^2+300p
how do i determine the demand equation?
To determine the demand equation based on the given revenue equation, you need to understand the relationship between price and quantity demanded. The demand equation represents this relationship.
In general, the demand equation is represented as Q(p), where Q represents quantity and p represents price. Quantity demanded generally decreases as the price increases, following the law of demand.
To find the demand equation from the revenue equation, you can use the fact that revenue is calculated as the product of price (p) and quantity (Q):
R(p) = p * Q(p)
In this case, the revenue equation is given as:
R(p) = -0.08p^2 + 300p
Now, we can rearrange the equation to isolate quantity (Q). Let's solve for Q(p):
R(p) = p * Q(p)
-0.08p^2 + 300p = p * Q(p)
Divide both sides of the equation by p:
Q(p) = -0.08p + 300
So, the demand equation is Q(p) = -0.08p + 300.