Question

Use the following data to answer the questions below.

P	Q
$15.25	125
$14.79	133
$14.33	140
$13.57	141
$12.96	147

The estimated demand function (P=f(Q))(P=f(Q)) is P=28.38−0.103Q

Using algebra to invert the demand function, the demand function (Q=f(P))(Q=f(P)) is Q=274.24−9.66P

1)

Use your first demand function to determine an equation for TR and MR as functions of Q. What is total revenue when P=$15.25 and when P=$14.10?

Select one:

a. At P=$15.25, TR=$1,179; at P=$14.10, TR=$988

b. At P=$15.25, TR=$2,011; at P=$14.10, TR=$1,953.

c. At P=$15.25, TR=$1,834; at P=$14.10, TR=$1,971.

d. At P=$15.25, TR=$1,930; at P=$14.10, TR=$1,945.

2)

What is the total-revenue maximizing price and quantity, and how much revenue is earned there?

Select one:

a. P∗=$15.12, Q∗=127, TR∗=$1,850

b. P∗=$14.28 ,Q∗=139, TR∗=$1,953

c. P∗=$13.57, Q∗=141, TR∗=$1,944

d. P∗=$14.19, Q∗=137, TR∗=$1,945

Answer 1

K- 28.30103 2 d Q 0 206 28-38 -206

し IS, 25. olun 126.925 IS.25(126.925). 1935. uhen 274.2-9/710 139:63 y at