2) (20) Demand for widgets is a linear function of price. If the price of Widgets is set to$20, 4200 widgets will be sold. If the price is raised to $25, demand falls to 3600 widgets.a) (4) Find the demand function D(x), where x represents the price and D(x)= y represents thedemand for widgets.b) (2) Describe the meaning of the slope of the demand function, in the context of the price, anddemand for widgets.c) (2) Find the revenue function R(x), which is price times the demand.(2) Graph the Revenue Function using Desmos, or any other graphing utility of your choice;note the scale on the axes. If your graph doesn't fit on the graph, your Revenue function isprobably incorrect. Hint Ask Questions! Email!100000900008000070000600005000040000300002000010000y-520 25 30 35 40 45 50 55 60 65e) (2) Give the meaningful domain for the revenue function. Use the criteria that one would notprice widgets so low that one would pay to get rid of them.510 15(2)Calculate the price algebraically that results in the maximum revenue.

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2) (20) Demand for widgets is a linear function of price. If the price of Widgets is set to $20, 4200 widgets will be sold. If the price is raised to $25, demand falls to 3600 widgets. a) (4) Find the demand function D(x), where x represents the price and D(x)= y represents the demand for widgets. b) (2) Describe the meaning of the slope of the demand function, in the context of the price, and demand for widgets. c)(2) Find the revenue function R(x), which is price times the demand.

2) (20) Demand for widgets is a linear function of price. If the price of Widgets is set to $20, 4200 widgets will be sold. If the price is raised to $25, demand falls to 3600 widgets. a) (4) Find the demand function D(x), where x represents the price and D(x)= y represents the demand for widgets. b) (2) Describe the meaning of the slope of the demand function, in the context of the price, and demand for widgets. c)(2) Find the revenue function R(x), which is price times the demand.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2) (20) Demand for widgets is a linear function of price. If the price of Widgets is set to
$20, 4200 widgets will be sold. If the price is raised to $25, demand falls to 3600 widgets.
a) (4) Find the demand function D(x), where x represents the price and D(x)= y represents the
demand for widgets.
b) (2) Describe the meaning of the slope of the demand function, in the context of the price, and
demand for widgets.
c) (2) Find the revenue function R(x), which is price times the demand.
(2) Graph the Revenue Function using Desmos, or any other graphing utility of your choice;
note the scale on the axes. If your graph doesn't fit on the graph, your Revenue function is
probably incorrect. Hint Ask Questions! Email!
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
y
-5
20 25 30 35 40 45 50 55 60 65
e) (2) Give the meaningful domain for the revenue function. Use the criteria that one would not
price widgets so low that one would pay to get rid of them.
5
10 15
(2)Calculate the price algebraically that results in the maximum revenue.

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