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In microeconomics, a demand curve in the coordinate system relates the

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In microeconomics, a demand curve in the coordinate system relates the  [#permalink]

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New post 21 May 2019, 08:21
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In microeconomics, a demand curve in the coordinate system relates the quantity purchased of a certain good, x, to the price of that good, y, as (x,y). Given the demand curve x=60000/y-10000, what would be the change in total revenue (price × quantity sold) if the price were increased from $1.50 to $2.00 per unit?

(A) −$15,000
(B) −$5,000
(C) $0
(D) $5,000
(E) $10,000
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Re: In microeconomics, a demand curve in the coordinate system relates the  [#permalink]

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New post 21 May 2019, 10:58
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The equation tells us how many units, x, we sell for a given price, y. When the price is y = $1.50, we sell:

x = 60,000/y - 10,000 = 60,000/1.5 - 10,000 = 40,000 - 10,000 = 30,000

so our revenue, units times price, is 1.5*30,000 = $45,000

Similarly, when y = 2, units sold is 60,000/2 - 10,000 = 20,000

so our revenue will be 2*20,000 = $40,000

So the revenue drops by $5000.
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Re: In microeconomics, a demand curve in the coordinate system relates the  [#permalink]

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New post 21 May 2019, 23:24
Can someone further explain this?
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Re: In microeconomics, a demand curve in the coordinate system relates the   [#permalink] 21 May 2019, 23:24

In microeconomics, a demand curve in the coordinate system relates the

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