A demand function for step stools manufactured by U-Step is q = -720p + 20,500.What is the revenue if the price per step stool is $18?
A) $369,000
B) $135,720
C) $28,040
D) $7,540

Question

Quizplus · Accepted Answer

To find revenue, we need to multiply the price by the quantity sold. Given that the price is $18, we can substitute this into the demand function to find the quantity: 
q = -720(18) + 20,500 = 7,540 
Therefore, the revenue is: 
R = p*q = 18*7,540 = $135,720 
Option B is the correct choice.

A Demand Function for Step Stools Manufactured by U-Step Is