The Relationship D = 5000 − 25p Describes What Happens

question 50

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 alternatives will maximize total revenue? What are the values for demand and revenue at this price?

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Definitions:

Interest

The expense associated with taking out a loan, usually represented as a yearly percent of the total loan value.

Years

A measurement of time equal to 365 days (or 366 days in a leap year), used to denote the duration or age of something.

Insurance Annuity

An insurance product that pays out income, typically used as a retirement strategy to provide individuals with a steady income in their post-work years.

Rate of Return

Net profit or net loss from an investment during a specified time span, presented as a percentage of the investment's initial financial input.