A manufacturer currently sells sunglasses for 4$ a pair. the price p and the demand x for these glasses are related by x=f(p)=7000-500p
If the current price is increased, will the revenue increase or decrease. why ?

thanks

Question

A manufacturer currently sells sunglasses for 4$ a pair. the price p and the demand x for these glasses are related by x=f(p)=7000-500p
If the current price is increased, will the revenue increase or decrease. why ?

thanks

mertsj · Answer

decrease.  If p increases, you will be subtracting a larger number from 7000 and thus f(p) will be smaller.