TR = TC (aq - bq2 = FC + vc/unit x no of units) is this equation examinable

You can be asked to Derive and manipulate a straight line demand equation. Derive an equation for the total cost function(including volume-based discounts). The straight line demand equation shows the relationship between price and demand. Formula: Demand equation (P) = a – bQ P = selling price Q = Quantity demanded at that price a = a theoretical maximum price at which there is no demand b = the change in price required to change demand by 1 unit (gradient) To calculate a: Formula: a = $(current price) + [ (current quantity at current price ÷ change in quantity when price is changed by $b) x $b] To calculate b: Formula: b = change in price ÷ change in quantity

For example Our product is priced at $13. At this price, we sell 75 a month. When we raised the price to $15 we sold 50. Determine the demand equation. P = a – bQ a = $13 + [(75/25) x $2 = $19 b = (15 – 12) ÷ (75 – 50) = 0.12 * Therefore P = 19 – 0.12Q * 12 = 19 – 0.12 Q * 12-19 = – 0.12 Q * Q = 58.33

This was helpful, Thanks for answering my question

Your welcome