Question: For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand. Let
d=annual demand for a product in units
p= price per unit
Assume that a firm accepts the following price-demand relationship as being realistic:
d= 800 - 10p
where p must be between $20 and $70.
a. How many units can the firm sell at the $20 per-unit price? At the $70 per-unit price?
b. Show the mathematical model for the total revenue (TR), which is the annual demand
multiplied by the unit price.
c. Based on other considerations, the firm
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