Demand Curves

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May 17, 2015 at 2:16 pm #246570
jemma242
Member
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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
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If:

180 = 1450-0.02q

then

-1450 + 180 = -0.02

-1270 = – 0.02Q

or

1270 = 0.02Q
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