Comments

    • Profile photo of John Moffat says

      In pricing questions we always assume that the price/demand relation ship is linear.

      Because of that, in this example, if the price goes up by $2 then the demand will fall by 2,000 units, but also, if the price goes down by $2 then the demand will increase by 2,000 units.

  1. Profile photo of fahim231 says

    hello sir

    I just noticed on example 6 you did not work out the formulas for total revenues or even total cost…….Does this mean you do not need these to derive at the answer? You can simply work it out from the marginal revenue = marginal cost formula?

    Thanks in advance

    • Profile photo of John Moffat says

      Although you could be asked to calculate total revenue and/or total cost, if you are simply asked to state which selling price will result in maximum profit then all you need to do is use the fact that for the optimum then it is when MR = MC.

  2. Profile photo of Rachel says

    Many thanks for these brilliant lectures. I have been studying one per evening and am finding ACCA brilliant (this is my first module) thanks to your website.

    A quick question, was example 3 of chapter 7 covering price elasticity of demand omitted from your lecture? I haven’t taken any notes on it. Probably my mistake!

    Thanks again.

  3. avatar says

    Thanks for the lecture. However, I have an issue. Going with the TR equation of TR = (A-BQ)Q, slotting in the figure of 57500 for quantity as derived, a as 120 and solving , we do not get the correct TR. Why is it so

  4. avatar says

    Good Day John,

    Must say that i am happy to be back with you again. I was successful in F2 thanks to opentuition.

    However, I am very confused with how we get the Marginal Revenue. (I did not do differentiate)

  5. avatar says

    Great lecture as always! .
    Sir i have a question. How do you see the usefulness of the price-demand equations as regards to the pricing strategies in theory and real life ?.

    Cheers : )

Leave a Reply