Question

In microeconomics, a demand curve in the coordinate system relates the quantity purchased of a certain good, x, to the price of that good, y, as (x,y). Given the demand curve x=60,000y−10,000, what would be the change in total revenue (price × quantity sold) if the price were increased from $1.50 to $2.00 per unit?

Answer 1

The change in the revenue is $100,000

Step-by-step explanation:

The quantity when the price is $1.50 is 60,000(1.50)-10,000=80,000. The revenue when the price for the price of $1.50 is 1.50*80,000 = 120,0000.

Now for the new price of $2.00, the quantity is 60,000(2)-10,000=110,000, and the revenue is 2*110,000=220.000.

With the revenues from when the price is $1.50 and $2.00, the change is the diference $220,000-$120,000=$100,000.

When the price increases from $1.50 to $2.00 the revenue increases $100.000