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The price P for demand D is given as P = 183 + 120 D – 3D2 . Find D for which the price is increasing. |
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Answer» The given function is p = 183 + 120 D – 3D2 :. dP/dD = 120 – 6D Now dP/dD = 0 ⇒ 120 – 6 D = 0 ⇒ D = 20 For increasing the price dP/dD > 0 120 – 6D > 0 – 6D > – 120 D < 120/6 D < 20. Demand and price cannot be negative ∴ Price is increasing in the internal (0, 20). |
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