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A General Linear Demand Function Has the Form That Follows q=np+bq = n p + b

Question 62

Multiple Choice

A general linear demand function has the form that follows. q=np+bq = n p + b (n and b constants, with n0n \neq 0 )

Obtain a formula for the price that maximizes revenue.


A) p=bnp = \frac { b } { n }
B) p=b2np = - \frac { b } { 2 n }
C) p=bnp = b n
D) p=n2bp = - \frac { n } { 2 b }
E) p=2nbp = - \frac { 2 n } { b }

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