Given the demand function Q_X = 1500 - 100P_X + 75P_Y + 1.5I + .06A where P_Y = $40.00. I = $2500, and A = $5,000, the average revenue equation is AR = 58.85 - .01Q_X.

Question

Quizplus · Accepted Answer

The average revenue equation is calculated as AR = TR/Q, where TR is the total revenue and Q is the quantity demanded. We cannot directly determine the TR equation from the given demand function Q_X, so we cannot accurately derive the AR equation. Therefore, the statement is false.

Given the Demand Function QX = 1500 - 100PX

Given the Demand Function Q_X = 1500 - 100P_X