A demand function defines the relationship between the price, p, of a product and the quantity, q = D(p)
of the product demanded at that price.
At a price of $7.70, the daily demand for a certain product is 8, 400.
At a price of $7.80, the daily demand for the same product is 8,300.
Letting the price, p, be the independent variable and daily demand, q, be the dependent variable, create
a linear demand curve of the form q = D(p)=m-p+b.
D(p)=
Find the daily demand if the price is $7.00.
q= D(7.00) =
The revenue, R, earned by selling q units of a product or service at a price of p dollars per unit is given
by the function
R(q)=pq
Which of the three prices produces the largest revenue?
$7.00
$7.80
$7.70