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Demand, Revenue, Cost, &
Profit
Demand Function – D(q)
ã p =D(q)
ã In this function the input is q and output p
ã q-independent variable/p-dependent variable
[Recall y=f(x)]
ã p =D(q) the price at which q units of the good can be
sold
ã Unit price-p
ã Most demand functions- Quadratic [ PROJECT 1]
ã Demand curve, which is the graph of D(q), is generally
downward sloping
– Why?
Demand Function – D(q)
ã As quantity goes down, what happens to
price?
-price per unit increa

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Demand, Revenue, Cost, &Profit
Demand Function
–
D(q)
ã
p =D(q)
ã
In this function the
input
is q and
output
p
ã
q-independent variable/p-dependent variable[Recall y=f(x)]
ã
p =D(q) the price at which q units of the good can besold
ã
Unit price-p
ã
Most demand functions- Quadratic [ PROJECT 1]
ã
Demand curve, which is the graph of D(q), is generallydownward sloping
–
Why?
Demand Function
–
D(q)
ã
As quantity goes down, what happens toprice?-price per unit increases
ã
As quantity goes up, what happens toprice?-price per unit decreases
Example
Demand Function
y = -0.0000018x
2
- 0.0002953x + 30.19$0$8$16$24$320 1,000 2,000 3,000 4,000
q
D ( q )
Define the demand function to be
D
(
q
) =
a
q
2
+
b
q
+
c
, where
a
=
0.0000018,
b
=
0.0002953, and
c
= 30.19.

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