Question

You are given a pair of equations, one representing a supply curve and the other representing a demand curve, where p is the unit price for x items.

466p+90x−2390=0

and

484p−22x−978=0


Determine the revenue function. Revenue function R(x)=?


I got (-90x/466) + (2390x/466), but apparently that is wrong...

Answer 1

I'd say revenue = price * demand

If the 2nd equation is the demand function, then we have

p = (22x+978)/484

revenue would thus be

R(x) = p*x = x(22x+978)/484

Not sure why the supply curve is given. Doesn't matter how many widgets you can dump on the market if no one wants them.

Am I off base here?

Answer 2

Actually I think you used the wrong function. The 1st one is the demand, not the second.