Question
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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Advanced Accounting
Authors: Gail Fayerman
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9781118774113, 1118774116, 111803791X, 978-1118037911
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