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The Relationship D = 5000 − 25p Describes What Happens

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Essay

The relationship d = 5000 − 25p describes what happens to demand (d) as price (p) varies. Here, price can vary between $10 and $50.
a.How many units can be sold at the $10 price? How many can be sold at the $50 price?
b.Model the expression for total revenue.
c.Consider prices of $20, $30, and $40. Which of these three price alternative will maximize total revenue? What are the values for demand and revenue at this price?


Definitions:

Net Taxes

The difference between total taxes levied by the government and the total transfer payments and subsidies it pays out.

Disposable Income

The amount of money an individual or household has to spend or save after income taxes have been deducted.

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Environmental Protection Agency

A U.S. federal agency responsible for creating and enforcing regulations that protect the environment and public health.

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