Demand, revenue, cost & profit - Derivative Applications

You’re one step closer to a better grade.

Learn with less effort by getting unlimited access, progress tracking and more.

Learn More

Demand, revenue, cost & profit


Demand is the relationship between the price of an item and the number of units that will sell at that price. In other words,
Demand →p(q) p(q)
where p is the price and q is the number of quantity. Usually, p(q)p(q) is expressed as the equation
p=mq+bp = mq+b

Revenue is the amount of income a company makes. The revenue function is expressed as
When you know what the demand is, then you can express RR as a function in terms of qq.

Cost is the amount of money a company needs to produce the items they are selling. It is usually expressed as C(q)C(q).

Profit is the net amount a company makes. It can be calculated by subtracting revenue from cost. In other words,
  • Intro Lesson
    Demand, Revenue, Cost & Profit Overview:
  • 1.
    Finding the Demand, Revenue, Cost and Profit Functions
    Desmond's Laptop Company is selling laptops at a price of $400 each. They estimate that they would be able to sell 200 units. For every $10 dollars increase in price, the demand for the laptops will decrease 30 units. Assume that the fixed cost of production is $42500 and each laptop costs $50 to produce.
  • 2.
    Patsy is selling phones at a price of $700 each. They estimate that they would be able to sell 1000 units. For every $1 dollars decrease in price, the demand for the phones will increase by 50 units. Assume that the fixed costs of production are $300000 and each phone costs $200 to produce.
Teacher pug

Demand, revenue, cost & profit

Don't just watch, practice makes perfect.

We have over 350 practice questions in Calculus for you to master.

Become a Member to Get More!

  • Easily See Your Progress

    We track the progress you've made on a topic so you know what you've done. From the course view you can easily see what topics have what and the progress you've made on them. Fill the rings to completely master that section or mouse over the icon to see more details.

  • Make Use of Our Learning Aids

    Last Viewed
    Practice Accuracy
    Suggested Tasks

    Get quick access to the topic you're currently learning.

    See how well your practice sessions are going over time.

    Stay on track with our daily recommendations.

  • Earn Achievements as You Learn

    Make the most of your time as you use StudyPug to help you achieve your goals. Earn fun little badges the more you watch, practice, and use our service.

  • Create and Customize Your Avatar

    Play with our fun little avatar builder to create and customize your own avatar on StudyPug. Choose your face, eye colour, hair colour and style, and background. Unlock more options the more you use StudyPug.