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=60,000y-10,000, what would be the change in total revenue (price * quantity sold) if the price were increased from $1.50 to $2.00 per unit?

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Business

Desiree Bailey

19 April, 19:20

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=60,000y-10,000, what would be the change in total revenue (price * quantity sold) if the price were increased from $1.50 to $2.00 per unit?

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Sanaa Solomon · Answer 1

The change in the revenue is $100,000

Explanation:

The quantity when the price is $1.50 is 60,000 (1.50) - 10,000=80,000. The revenue when the price for the price of $1.50 is 1.50*80,000 = 120,0000.

Now for the new price of $2.00, the quantity is 60,000 (2) - 10,000=110,000, and the revenue is 2*110,000=220.000.

With the revenues from when the price is $1.50 and $2.00, the change is the diference $220,000-$120,000=$100,000.

When the price increases from $1.50 to $2.00 the revenue increases $100.000