Question

Calculate revenue. Revenue is the quantity sold times the price for the product. The quantity sold will be the smaller of the quantity supplied or the quantity demanded. (You can't sell more than you are willing to make even if the market demands a higher quantity. Likewise you can't sell more than is demanded even if you are willing to supply more than the quantity demanded.) You will need to calculate which of these values is smaller because quantity demanded will be smaller than quantity supplied for some prices, but not others.

Formulas Help Assignment Share Comments File A Data Review View Queries & Connections Search 21 2 Home Insert Draw Page Layout From Text/CSV To Recent Sources Frumn Web Existing Currections From Table/Range Get in Transform Data X fax 7 y Filter Clear Reapply Refresh El Progres Get Data- Stocks Geography Outline All Edit Links Queries in connections Advanced Text to * Columns Bs. Data lal: What-It Forecast Analysis - Shaat Data Types Sort 9 Filter Forecast D12 F G H I J K L M N O P Q Cost Inputs Fixed Costs 15000 Variable Costs 25 Supply and Demand Inputs Demand Intercept 600 Demand Slope 3.5 Supply Intercept Supply Slope 4.5 Price $30 0 Supply and Demand Lines Profit for Various Prices Intermediate Calculations Quantity Demanded $495 Quantity Supplied $135 Quantity Demand 0 0 90 100 110 120 130 140 -Supaly Profit Calculations Revenue 50 60 70 100 110 120 80 90 Price Total Variable Costs Total Fixed Costs Total Costs -3000 -10000 -12000 Profit Scenarios Profit @ Price = $75 Profit @ Price = $98.21 29 30 31 SupplyAndDemand # Ready E L - L + 100%

Answer 1

Referring to "You will need to calculate which of these values is smaller because quantity demanded will be smaller than quantity supplied for some prices, but not others." The difference between the quantity demand and the quantity supplied is referred to as the shortage or surplus at the given price.

In the picture below is a detailed solution for the entire sheet:

me out With the supply and demand inputh we ca demand and supply functions. Qd = 600-3.5P Os = 4.5P tind equlibuium (just incase) and check with graph. Qe = Qd = Qs 1600-3.5P = 4.5P 600 = 8P Pe=75 Qe = 337.5. Both ae, Pe correspond to the graph Ichart | diagram A(1) at punce $30, accouding to impiet values, Od = 495 1Q8=135 a hevenue is the income generated from the sale of amount of units produced, here that is ds. TR=QXP? = 135 x 30 $4050 {Te = 15000 + 250 ? =818375 Pustit = TR-Te = -14325 - LOSS

Pecolits @ $75 - the ea clubuium price, to which We know $75 is the equilibrium price, to why quantity is 338 € 337.5 <caut make half a product TR= 75 x 338 = 25350 Te = 15000 + 25(338) - 23450 Pustit = 25350-23450 = 1900 Pustits @ 98.21 => Rememben, leevenue is the rulow of money aften a gold at a centaur puice, and sence quice is grea Pe, only the number of goods demanded would loldi od=256.265 IP 898.21 FR = 25167.78 TL = 21406 Pustit = 25167 78-21466 =$8761-155