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Demand Curves

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Demand Curves

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  • May 17, 2015 at 2:16 pm #246570
    jemma242
    Member
    • Topics: 81
    • Replies: 96
    • ☆☆

    Hi

    I have just done a question which involved a demand curve and slightly confused on the following;

    MR = MC and variable cost of $180

    MR equation = 1450 – 0.02q
    The answer then follows

    180 = 1450-0.02q and therefore 0.02q = 1270 and q = 63500

    Now why have we done 1450- 180? would that not change to a plus?

    Thank you for you help
    Jemma

    May 17, 2015 at 5:57 pm #246619
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10538
    • ☆☆☆☆☆

    If:

    180 = 1450-0.02q

    then

    -1450 + 180 = -0.02

    -1270 = – 0.02Q

    or

    1270 = 0.02Q

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