Re: ISI 2010

Posted by Ram on May 06, 2012; 6:04am
URL: http://discussion-forum.276.s1.nabble.com/ISI-2010-tp7530130p7531552.html

Hi Neha,
Here the inverse demand function is P=a-bQ so now here we know one point on the line i.e. equilibrium point (1500,200) and now we get
200=a-1500b ------- (1)
now equate MR=MC
here MR is a-2bq=50 but q=1500 so a-3000b=50-------(2)
by solving eqs (1) & (2) you will get the equation..similarly you can find the demand function for Economy class as well..
Hope it helps :)