The Demand Equation for a Product Is $p = 60 - 0.005 x,$

question 30

Multiple Choice

The demand equation for a product is $p = 60 - 0.005 x,$ where $p$ is the price per unit and $x$ is the number of units sold. The total revenue $R$ for selling $x$ units is given by $R = x p = x ( 60 - 0.005 x ) .$ How many units must be sold to produce a revenue of $180,000?

• A)12,000 units
• B)6000 units
• C)18,000 units
• D)24,000 units
• E)30,000 units

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Definitions:

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Willingness To Pay

The maximum price at which a consumer is prepared to buy a good or service, reflecting the perceived value of the product to the consumer.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be consumed by everyone and one person's consumption does not diminish another's.

Marginal Cost

The cost incurred by producing one additional unit of a product, reflecting changes in variable costs.