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tapasgupta
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In microeconomics, a demand curve in the coordinate system relates the 21 May 2019, 09:21
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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 \(x=\frac{60000}{y}-10000\), 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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B
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In microeconomics, a demand curve in the coordinate system relates the 21 May 2019, 11:58
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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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In microeconomics, a demand curve in the coordinate system relates the 26 Dec 2023, 17:37
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IanStewart
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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fault in question is in equation given , whether its is (60000/y )-10000 or simply 60000/y-10000
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In microeconomics, a demand curve in the coordinate system relates the 26 Dec 2023, 22:31
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Ved22
IanStewart
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.


fault in question is in equation given , whether its is (60000/y )-10000 or simply 60000/y-10000
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All is good there.

  • The expression "x = 60000/y - 10000" is mathematically the same as "x = (60000/y) - 10000". Here, you divide 60000 by y first and then subtract 10000 from the result.
  • If the expression was intended to be "x = 60000/(y - 10000)", it would be written exactly like that. In this case, you subtract 10000 from y first and then divide 60000 by this result.

So, "x = 60000/y - 10000" can only mean "x = (60000/y) - 10000" based on standard mathematical notation.

Hope it's clear.
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In microeconomics, a demand curve in the coordinate system relates the 26 Dec 2023, 22:54
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tapasgupta
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
Show more

\(x = \frac{60k}{y} - 10k\) (k simply denotes '000)

x = quantity, y = price

When y = 1.5,
\(x = \frac{60k}{1.5} - 10k = 30k\)
So total revenue (price × quantity) = 1.5 * 30k = 45k

When y = 2,
\(x = \frac{60k}{2} - 10k = 20k\)
So total revenue (price × quantity) = 2 * 20k = 40k

Hence the total revenue decreases by 5k.

Answer (B)
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