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Q. P= 24 -.004Q
P is SP , Q is quantity demand per week at that price . At the current sales price of $ 10 per unit demand per week 3500 unit .
By how much could the company raise the selling price per unit I. Order to increase total sales revenue per week , before total sales revenue per week from the product begins to go into decline ?Ans: given
24 -0.008Q = 0
Q=3000(Problem is how they have worked out Q = 3000)!!!!!
Please let me knowWe know that,MR=a-2BQ ,and MR =MC
here MC=0
so 0=24-0.004*2Q
>>0.008Q=24
>>Q=3000am i r8?
jonyrazib is correct (even though he should not really be answering in this forum because he is not the tutor 🙂 )
Hi Mr John,
Excuse me if I interfere ,
But I want to know after we got the q=3000 then how to get the possible increase in price questioned .
Thanks a lot
Once you have a value for Q, you put it in the price demand equation (P = 24 – 0.004Q) and calculated the value of P.
Thanks a lot ,
I was thinking of price as $ 24 but I should think of $ 10.00 it will be raised to $ 12.00
Thanks,
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