Chapter 2.1, Problem 59E

BuyFind*arrow_forward*

7th Edition

Stefan Waner + 1 other

ISBN: 9781337274203

Textbook Problem

Explain why, if demand is a linear function of unit price *p* (with negative slope), then there must be a *single value of p* that results in the maximum revenue.

To determine

The reason, there must be a single value of unit price

Explanation

**Given Information:**

Demand is a linear function of unit price

The quadratic models are also used to solve demand revenue problems and there is only one single value that results in maximum value. That point corresponds to the vertex of the parabola on the graph.

For example:

Consider the given demand equation,

The relationship between Revenue and Price is,

Substitute

Therefore, the total Revenue

Consider the given annual income equation,

Compare the equation

The values are

Sect-2.1 P-1ESect-2.1 P-2ESect-2.1 P-3ESect-2.1 P-4ESect-2.1 P-5ESect-2.1 P-6ESect-2.1 P-7ESect-2.1 P-8ESect-2.1 P-9ESect-2.1 P-10E

Sect-2.1 P-11ESect-2.1 P-12ESect-2.1 P-13ESect-2.1 P-14ESect-2.1 P-15ESect-2.1 P-16ESect-2.1 P-17ESect-2.1 P-18ESect-2.1 P-19ESect-2.1 P-20ESect-2.1 P-21ESect-2.1 P-22ESect-2.1 P-23ESect-2.1 P-24ESect-2.1 P-25ESect-2.1 P-26ESect-2.1 P-27ESect-2.1 P-28ESect-2.1 P-29ESect-2.1 P-30ESect-2.1 P-31ESect-2.1 P-32ESect-2.1 P-33ESect-2.1 P-34ESect-2.1 P-35ESect-2.1 P-36ESect-2.1 P-37ESect-2.1 P-38ESect-2.1 P-39ESect-2.1 P-40ESect-2.1 P-41ESect-2.1 P-42ESect-2.1 P-43ESect-2.1 P-44ESect-2.1 P-45ESect-2.1 P-46ESect-2.1 P-47ESect-2.1 P-48ESect-2.1 P-49ESect-2.1 P-50ESect-2.1 P-51ESect-2.1 P-52ESect-2.1 P-53ESect-2.1 P-54ESect-2.1 P-55ESect-2.1 P-56ESect-2.1 P-57ESect-2.1 P-58ESect-2.1 P-59ESect-2.1 P-60ESect-2.1 P-61ESect-2.1 P-62ESect-2.2 P-1ESect-2.2 P-2ESect-2.2 P-3ESect-2.2 P-4ESect-2.2 P-5ESect-2.2 P-6ESect-2.2 P-7ESect-2.2 P-8ESect-2.2 P-9ESect-2.2 P-10ESect-2.2 P-11ESect-2.2 P-12ESect-2.2 P-13ESect-2.2 P-14ESect-2.2 P-15ESect-2.2 P-16ESect-2.2 P-17ESect-2.2 P-18ESect-2.2 P-19ESect-2.2 P-20ESect-2.2 P-21ESect-2.2 P-22ESect-2.2 P-23ESect-2.2 P-24ESect-2.2 P-25ESect-2.2 P-26ESect-2.2 P-27ESect-2.2 P-28ESect-2.2 P-29ESect-2.2 P-30ESect-2.2 P-31ESect-2.2 P-32ESect-2.2 P-33ESect-2.2 P-34ESect-2.2 P-35ESect-2.2 P-36ESect-2.2 P-37ESect-2.2 P-38ESect-2.2 P-39ESect-2.2 P-40ESect-2.2 P-41ESect-2.2 P-42ESect-2.2 P-43ESect-2.2 P-44ESect-2.2 P-45ESect-2.2 P-46ESect-2.2 P-47ESect-2.2 P-48ESect-2.2 P-49ESect-2.2 P-50ESect-2.2 P-51ESect-2.2 P-52ESect-2.2 P-53ESect-2.2 P-54ESect-2.2 P-55ESect-2.2 P-56ESect-2.2 P-57ESect-2.2 P-58ESect-2.2 P-59ESect-2.2 P-60ESect-2.2 P-61ESect-2.2 P-62ESect-2.2 P-63ESect-2.2 P-64ESect-2.2 P-65ESect-2.2 P-66ESect-2.2 P-67ESect-2.2 P-68ESect-2.2 P-69ESect-2.2 P-70ESect-2.2 P-71ESect-2.2 P-72ESect-2.2 P-73ESect-2.2 P-74ESect-2.2 P-75ESect-2.2 P-76ESect-2.2 P-77ESect-2.2 P-78ESect-2.2 P-79ESect-2.2 P-80ESect-2.2 P-81ESect-2.2 P-82ESect-2.2 P-83ESect-2.2 P-84ESect-2.2 P-85ESect-2.2 P-86ESect-2.2 P-87ESect-2.2 P-88ESect-2.2 P-89ESect-2.2 P-90ESect-2.2 P-91ESect-2.2 P-92ESect-2.2 P-93ESect-2.2 P-94ESect-2.2 P-95ESect-2.2 P-96ESect-2.2 P-97ESect-2.2 P-98ESect-2.2 P-99ESect-2.2 P-100ESect-2.2 P-101ESect-2.2 P-102ESect-2.2 P-103ESect-2.2 P-104ESect-2.2 P-105ESect-2.2 P-106ESect-2.2 P-107ESect-2.2 P-108ESect-2.2 P-109ESect-2.2 P-110ESect-2.3 P-1ESect-2.3 P-2ESect-2.3 P-3ESect-2.3 P-4ESect-2.3 P-5ESect-2.3 P-6ESect-2.3 P-7ESect-2.3 P-8ESect-2.3 P-9ESect-2.3 P-10ESect-2.3 P-11ESect-2.3 P-12ESect-2.3 P-13ESect-2.3 P-14ESect-2.3 P-15ESect-2.3 P-16ESect-2.3 P-17ESect-2.3 P-18ESect-2.3 P-19ESect-2.3 P-20ESect-2.3 P-21ESect-2.3 P-22ESect-2.3 P-23ESect-2.3 P-24ESect-2.3 P-25ESect-2.3 P-26ESect-2.3 P-27ESect-2.3 P-28ESect-2.3 P-29ESect-2.3 P-30ESect-2.3 P-31ESect-2.3 P-32ESect-2.3 P-33ESect-2.3 P-34ESect-2.3 P-35ESect-2.3 P-36ESect-2.3 P-37ESect-2.3 P-38ESect-2.3 P-39ESect-2.3 P-40ESect-2.3 P-41ESect-2.3 P-42ESect-2.3 P-43ESect-2.3 P-44ESect-2.3 P-45ESect-2.3 P-46ESect-2.3 P-47ESect-2.3 P-48ESect-2.3 P-49ESect-2.3 P-50ESect-2.3 P-51ESect-2.3 P-52ESect-2.3 P-53ESect-2.3 P-54ESect-2.3 P-55ESect-2.3 P-56ESect-2.3 P-57ESect-2.3 P-58ESect-2.3 P-59ESect-2.3 P-60ESect-2.3 P-61ESect-2.3 P-62ESect-2.3 P-63ESect-2.3 P-64ESect-2.3 P-65ESect-2.3 P-66ESect-2.3 P-67ESect-2.3 P-68ESect-2.3 P-69ESect-2.3 P-70ESect-2.3 P-71ESect-2.3 P-72ESect-2.3 P-73ESect-2.3 P-74ESect-2.3 P-75ESect-2.3 P-76ESect-2.3 P-77ESect-2.4 P-1ESect-2.4 P-2ESect-2.4 P-3ESect-2.4 P-4ESect-2.4 P-5ESect-2.4 P-6ESect-2.4 P-7ESect-2.4 P-8ESect-2.4 P-9ESect-2.4 P-10ESect-2.4 P-11ESect-2.4 P-12ESect-2.4 P-13ESect-2.4 P-14ESect-2.4 P-15ESect-2.4 P-16ESect-2.4 P-17ESect-2.4 P-18ESect-2.4 P-19ESect-2.4 P-20ESect-2.4 P-21ESect-2.4 P-22ESect-2.4 P-23ESect-2.4 P-24ESect-2.4 P-25ESect-2.4 P-26ESect-2.4 P-27ESect-2.4 P-28ESect-2.4 P-29ESect-2.4 P-30ESect-2.4 P-31ESect-2.4 P-33ESect-2.4 P-34ESect-2.4 P-35ESect-2.4 P-36ESect-2.4 P-37ESect-2.4 P-38ESect-2.4 P-39ESect-2.4 P-40ESect-2.4 P-41ESect-2.4 P-42ESect-2.4 P-43ESect-2.4 P-44ECh-2 P-1RECh-2 P-2RECh-2 P-3RECh-2 P-4RECh-2 P-5RECh-2 P-6RECh-2 P-7RECh-2 P-8RECh-2 P-9RECh-2 P-10RECh-2 P-11RECh-2 P-12RECh-2 P-13RECh-2 P-14RECh-2 P-15RECh-2 P-16RECh-2 P-17RECh-2 P-18RECh-2 P-19RECh-2 P-20RECh-2 P-21RECh-2 P-22RECh-2 P-23RECh-2 P-24RECh-2 P-25RECh-2 P-26RECh-2 P-27RECh-2 P-28RECh-2 P-29RECh-2 P-30RECh-2 P-31RECh-2 P-32RECh-2 P-33RECh-2 P-35RECh-2 P-36RECh-2 P-37RECh-2 P-38RECh-2 P-39RECh-2 P-40RECh-2 P-41RECh-2 P-42RECh-2 P-43RECh-2 P-44RECh-2 P-45RECh-2 P-50RE

Calculus: An Applied Approach (MindTap Course List)

Multivariable Calculus

Single Variable Calculus: Early Transcendentals, Volume I

Calculus: Early Transcendental Functions

Applied Calculus

Precalculus: Mathematics for Calculus (Standalone Book)

Calculus: Early Transcendentals

Essentials Of Statistics

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Calculus (MindTap Course List)

Statistics for The Behavioral Sciences (MindTap Course List)

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Single Variable Calculus

Probability and Statistics for Engineering and the Sciences

Finite Mathematics

Intermediate Algebra

Understanding Basic Statistics

Elementary Geometry For College Students, 7e

Contemporary Mathematics for Business & Consumers

Mathematical Excursions (MindTap Course List)

Mathematical Applications for the Management, Life, and Social Sciences

Elementary Technical Mathematics

Calculus: Early Transcendental Functions (MindTap Course List)

Calculus of a Single Variable

Single Variable Calculus: Early Transcendentals

Trigonometry (MindTap Course List)

Elements Of Modern Algebra

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

Study Guide for Stewart's Multivariable Calculus, 8th

Introduction To Statistics And Data Analysis

Elementary Geometry for College Students

Finite Mathematics for the Managerial, Life, and Social Sciences

Calculus (MindTap Course List)

Multivariable Calculus

Statistics for Business & Economics, Revised (MindTap Course List)

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Research Methods for the Behavioral Sciences (MindTap Course List)

Mathematics For Machine Technology

Research Methods for the Behavioral Sciences (MindTap Course List)

College Algebra (MindTap Course List)