1.Here is a linear demand function: 5Q = 50 -5P. Find its price function by inverting the demand function. Then find its total revenue function by multiplying through by Q. EXAMPLE: The linear demand function Q = 400 -250P inverts into the price function P = 1.6 -0.004Q. Multiplying this by Q gives its total revenue function TR = 1.6Q -0.004Q2. This skill will be useful in assignment 4. Show the algebra involved a. Derive the price function from the demand function 5Q = 50 – 5P: P = b. Derive the total revenue function (TR) from the price function in (a.): TR =
1.Here is a linear
a. Derive the price function from the demand function 5Q = 50 – 5P:
P =
b. Derive the total revenue function (TR) from the price function in (a.):
TR =
2. Evaluate the following TR function: TR = 10Q – Q2. EXAMPLE: When Q = 5 TR= $25.
a. When Q = 3, TR = $_____ b. When Q = 10, TR = $_____
3. Evaluate the following expression. Y = 2X3 + (2X + 5)2 EXAMPLE: When X = 1, Y = 51.
a. When X = 0, Y = ___ b. When X = 2, Y = ___
c. When X = 3, Y = ___ d. When X = 5, Y = ___
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