The price-demand equation for hamburgers at a fast food restaurant is given by the equation below. Currently the price of a hamburger is $4.50. If the price is
increased by 20% how will the revenue be affected?
x+500p = 3500
If the price is increased by 20%, the revenue will
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The given demand equation is a linear relationship through which it is possible to calculate the revenue

When the price is increased by 20%, the revenue decreases by 23.2%

Reason:

The given equation relating price and quantity is; x + 500·p = 3,500

The current price of a hamburger = $4.50

The effect on the revenue following a price increase of 20%

Solution;

Quantity, x = 3,500 - 500·p

Current quantity is therefore;

x = 3,500 - 500 × 4.5 = 1,250

Revenue = Price × Quantity demanded

The current revenue = $4.5 × 1,250 = $5,625

If the price increased 20%, we have;

New price = 1.2 × 4.5 = 5.4

The new increased price of the hamburger = $5.4

The new quantity demanded, x' = 3,500 - 500 × 5.4 = 800

The new revenue = $5.4 × 800 = $4,320

The change in revenue is therefore;

Therefore;

Therefore;

When the price is increased by 20%, the revenue decreases by 23.2%

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Work Shown:

x = demand

p = price

Solve for the demand x when the price is p = 4.50 dollars.

x+500p = 3500

x+500(4.50) = 3500

x+2250 = 3500

x = 3500-2250

x = 1250

If the price is $4.50, then the demand is 1250 (ie 1250 people will want a hamburger)

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Compute the revenue

Revenue = (price per item)*(number of items sold)

Revenue = p*x

Revenue = (4.50)*(1250)

Revenue = 5625

If the price per burger is $4.50, then the revenue is $5,625.

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Let's increase the price by 20%. To do this, multiply by 1.20

1.20*4.50 = 5.40

The price of the burger is now $5.40

Let's see what x will become after we plug in p = 5.40

x+500p = 3500

x+500(5.40) = 3500

x+2700 = 3500

x = 3500-2700

x = 800

The demand has dropped to 800

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Next compute the new revenue

Revenue = (price per item)*(number of items sold)

Revenue = p*x

Revenue = (5.40)*(800)

Revenue = 4320

The revenue is now $4,320

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Lastly, find the percent change from the old revenue ($5,625) to the new revenue ($4,320)

A = old value = 5625

B = new value = 4320

C = percent change from A to B

C = 100*(B-A)/A

C = 100*(4320-5625)/5625

C = 100*(-1305/5625)

C = 100*(-0.232)

C = -23.2%

The negative C value indicates a percent decrease.

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step-by-step explanation:

i am writing something. yes, i plan to make it the most boring thing ever written. i go to the store. a car is parked. many cars are parked or moving. some are blue. some are tan. they have windows. in the store, there are items for sale. these include such things as soap, detergent, magazines, and lettuce. you can enhance your life with these products. soap can be used for bathing, be it in a bathtub or in a shower. apply the soap to your body and rinse. detergent is used to wash clothes. place your dirty clothes into a washing machine and add some detergent as directed on the box. select the appropriate settings on your washing machine and you should be ready to begin. magazines are stapled reading material made with glossy paper, and they cover a wide variety of topics, ranging from news and politics to business and stock market information. some magazines are concerned with more recreational topics, like sports card collecting or different kinds of hairstyles. lettuce is a vegetable.

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step-by-step explanation: