Question

The equation below represents a linear demand curve. Use the grid (right) for your plots. Write all derivations in the space below. l) Plot the demand function on the top set of axes. Your demand function is: Qx = 60000 - 100Px

l) Plot the demand function on the top set of axes. $_pDIAviPCRIVol5cTnnCZvMKJIUx_-lrYivVVtsC$

2) The price function is the inverse of the demand function. Write this inverse below.

3) Use the price function to obtain the total revenue function (TR). Write the TR function below. You will plot TR on the lower set of axes in step 5.

4) Derive (or simply write) the marginal revenue (MR) function below. Plot MR on the top set of axes (in the proper location with respect to the demand function).

5) Use the TR function (3) to calculate the revenue for each of the seven Qx values below. Use the seven revenues to plot the revenue function properly.

Qx	Revenue
0
10k
20k
30k
40k
50k
60k

k means thousand

Answer 1

11 0 = 6000orloop When P=0, 0 - 60ooo. when oro, P = 60o By plotting this, we get the demand (27 d = 6000o - loop loop - 60000 - 0 IP - 600 0.010 Inverse demand function (3) Total Revenue TR = Plo) t602-00201 Y TR= bood-0.0102] (4) marginal Revenue, MR = 5TR I MR = 600-0.020 when 0:0 When MR-O MR-600 o- 30000

By plotting this we get the MR cuore TR 600 0-0.0102 (5) TOK zok 30k TR 0 SR Soook 80ook Чоооk 80ook 50ook nok sok bok n Price ML curve Toot Demand k 200F o 20k Yok bok sok duantity