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You operate a gaming Web site, www.mudbeast.net, where users must pay a small fee to log on. When you charged $4 the demand was

 
  

You operate a gaming Web site, www.mudbeast.net, where users must pay a small fee to log on. When you charged $4 the demand was 570 log-ons per month. When you lowered the price to $3.50, the demand increased to 855 log-ons per month. (a) Construct a linear demand function for your Web site and hence obtain the monthly revenue R as a function of the log-on fee x. Solution: To construct the linear demand function q=mx+b, use the given information to find the slope m 92-9855-570 3.5-4 285 -0.5

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