How Is Demand Related to Revenue?

I have been getting a number of questions about going from the demand function to the revenue function. This was discussed in Question 2 of Section 10.1 at the beginning of the class.

There is also a handout in the Tech 4 folder that describes the process of getting the revenue function. In Tech 4, you start by finding a line that passes through your data to get D(Q). Even though the handout in the folder uses x, I highly suggest using Q instead of x so that your mind focuses on the fact that the input represents a quantity of product. So this function takes in the quantity and outputs the corresponding price. That is what demand functions do….they relate the price of an item with the corresponding quantity that consumers demand.
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