Demand, Revenue, Cost, & Profit

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Demand, Revenue, Cost, & Profit Demand Function – D(q) ã p =D(q) ã In this function the input is q and output p ã q-independent variable/p-dependent variable [Recall y=f(x)] ã p =D(q) the price at which q units of the good can be sold ã Unit price-p ã Most demand functions- Quadratic [ PROJECT 1] ã Demand curve, which is the graph of D(q), is generally downward sloping – Why? Demand Function – D(q) ã As quantity goes down, what happens to price? -price per unit increa
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  Demand, Revenue, Cost, &Profit  Demand Function  – D(q) ã p =D(q) ã In this function the input  is q and output  p ã q-independent variable/p-dependent variable[Recall y=f(x)] ã p =D(q) the price at which q units of the good can besold ã Unit price-p ã Most demand functions- Quadratic [ PROJECT 1] ã Demand curve, which is the graph of D(q), is generallydownward sloping  – Why?  Demand Function  – D(q) ã As quantity goes down, what happens toprice?-price per unit increases ã As quantity goes up, what happens toprice?-price per unit decreases  Example  Demand Function y = -0.0000018x 2 - 0.0002953x + 30.19$0$8$16$24$320 1,000 2,000 3,000 4,000 q    D   (  q   )  Define the demand function to be  D ( q ) = a  q 2 + b  q + c , where a =  0.0000018, b =  0.0002953, and c = 30.19.
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