Question

Let the demand function be p = (2x + 5)/(x ^ 2 + 5x + 5) where p is the price and x is the quantity. Show, by using the concept of limit, that the price falls as the quantity demanded increases infinitely large. Also, show that the revenue tends to limiting value as the quantity demanded increases infinitely large. ​

Answer 1

Answer:

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Answer 2

CONCEPT:

Basically, we have to show that there exists a value even if we increase the quantity infinitely.

POINTS TO REMEMBER:

revenue function = price x quantity

basic limit concept as we should never let our answer in infinity form.