If P is the price in dollars and q is the quantity, demand for a product is given by
q=6000e?-0.09p??
Find the revenue and derivative of revenue with respect to price at a price of $20. Interpret your answers in economic terms.
(a) The revenue at a price of $20 is ___?_____.
(b) The derivative of revenue with respect to price at a price of $20 is ____?____.
(c) Interpretation of the revenue at price of $20:
Choose one:
(i.) If price is increased by another dollar over $20, revenue will decrease by |R(20)|
(ii.) If price is increased by another dollar over $20, revenue will increase by |R(20)|
(iii.) Revenues of |R(20)| can be expected when the selling price is $20
(d) Interpretation of the derivative of the revenue with respect to price at a price of $20.
Choose one:
(i.) If price is increased by another dollar over $20, revenue will decrease by |R?′??(20)|
(ii.) Revenues of |R?′??(20)| can be expected when the selling price is $20.
(iii.) If price is increased by another dollar over $20, revenue will increase by |R?′??(20)|