Find Revenue Function From Demand Function

R p x.

Find revenue function from demand function. In this video we maximize the revenue from a linear demand function by. Demand revenue cost profit demand function d q p d q in this function the input is q and output p q independent variable p dependent variable recall y f x p d q the price at which q units of the good can be sold unit price p most demand functions quadratic project 1 demand curve which is the graph of d q is generally downward sloping why. The lower the price of course the higher the demand. In this video we maximize the revenue from a linear demand function by finding the vertex of a quadratic function.

You might think that the number purchased should be a function of the price input a price and find out how many items people will buy at that price but traditionally a demand function is done the other way around. Isn t this the revenue already based on the correlation between price and demand. I am a bit confused by the wording and what i should do. The price is given as a function of the number demanded.

For instance if a lemonade stand sold x glasses of lemonade at 50 cents each the revenue function. R revenue p price per unit x number of units sold. If one type of product is being sold at one price the revenue function is simply. What is your observation.

However if the price is 70 dollars the demand is 5000. The higher the price the less the demand. Find the revenue function. Then calculate f 4249 f 4250 and f 4251.