Answers

(1) Calculating a Percentage:

Finding 30% of 80:
We can find 30% of 80 by converting the
percentage into a decimal and multiplying it
by 80.
Method:
1. Convert 30% to a decimal: 30% = 30 /
100 = 0.3
2. Multiply the decimal by 80: 0.3 * 80 = 24
Therefore, 30% of 80 is 24.

(2) Analyzing Compound Percentages:

Finding the net effect of a 30% decrease
followed by a 25% increase:
Simply adding the two individual percentages
won't give us the correct answer. We need to
consider the cumulative effect.
Method:
1. Let P be the original price.
2. After a 30% decrease, the price becomes
0.7P (70% of the original price).
3. A 25% increase on the discounted price
is 1.25 * 0.7P (125% of 70% of the
original price).
 4. Calculate the net change: (1.25 * 0.7P) /
P - 1 = 0.9375 - 1 = -0.0625
Expressing the change as a percentage: -
0.0625 represents a 6.25% decrease.
Therefore, the combined effect is a 6.25%
decrease, not simply adding the 30% and
25% changes.
(3) Deriving Marginal Revenue (MR):
Finding MR given a demand function of
60-50p:
In linear demand functions like this, the price
(p) itself represents the marginal revenue
(MR).
Method:
Since the demand function is linear (with a
constant price term), the change in price
directly translates to the change in marginal
revenue.
Therefore, MR is equal to 10.

(4) Estimating Change in Total Revenue

(TR):
Estimating the change in TR due to a 2-
unit decrease in Q:
We can calculate the difference in TR at the
initial and final demand levels.
Method:
1. Given TR function: TR = 600 - 50Q
2. Initial demand (Q) = 20
o Calculate TR at Q = 20: TR = 600 -

(50 * 20) = 100

3. Final demand (Q) = 18 (after a 2-unit
decrease)
o Calculate TR at Q = 18: TR = 600 -

(50 * 18) = 200

4. Change in TR: TR (final) - TR (initial) =
200 - 100 = -100
Therefore, the total revenue is estimated
to decrease by 100 due to the 2-unit
decrease in quantity.

(5) Determining Scale Factor for Decrease:

Finding the scale factor for a 21%
decrease:
The scale factor represents the proportion by
which the original value is multiplied.
Method:
1. Convert the decrease percentage to a
decimal: 21% = 0.21
2. Calculate the scale factor: 1 - 0.21 = 0.79
Therefore, the scale factor for a 21%
decrease is 0.79.