Question

Question 1

Consider the demand function:
Q = -3p2 + 2p + 1970
=
where q = quantity, p = price
1
a) Find Total Revenue as a function of p.
(Hint: Do not attempt to find Total Revenue as a function of q, as to do so
requires use of the inverse demand function which is difficult to find in this case.

Answer 1

Given:

The demand function is,

`Q=-3p^2+2p+1970`

The total revenue function is,

`\begin{gathered} TR=p* Q \\ TR=p*(-3p^2+2p+1970) \\ TR=-3p^3+2p^2+1970p \end{gathered}`

Answer:

`TR=-3p^3+2p^2+1970p`