Question

The demand function for commodity X is Qd = 300 - 20P where P is the price in rupees per unit and QD is the quantity demanded in units per period.Which of the following is the price level at which total revenue of a firm facing this demand function is maximised

Answer 1

Explanation:

Suppose that the market demand for pizza is given by the equation Qd=300−20P Q d = 300 − 20 P and the market supply for pizza is given by the equation Qs=20P−100 Q s = 20 P − 100 , where Qd = quantity demanded, Qs = quantity supplied, P =price (per pizza).