Help with price/ quantity/demand question ?

Question

for a product the following applies , when price = £40 demand is 400 units , when price =£20 demand is 800 units , create a price , cost and revenue equations , i got the cost and price but i dont get how to get the revenue equation , the answer is R= 60q - 0.05q^2 , any show me how to get there ?

mukavetz · Answer

revenue is income - cost so if you have price (income) and cost formula's just subtract the two.

Your question does not give any info on cost.

The info given does show that income is constant, does not change with price----400*40 = 800 * 20

Let me know thru comments if you need more thought put into this.

Help with price/ quantity/demand question ?

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