hi sir,

good morning. I need a solution for the following problem.

If a certain commoditie's price is increasing at 2% and its production is increasing at 5 % annualy then at what rate revenue increases?

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- April 10th 2006, 10:24 PM #1mahesasarmaGuest

- April 13th 2006, 01:41 PM #2

- Joined
- Apr 2005
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Originally Posted by**mahesasarma**

Revenue = Production times Unit Price

R = P*u

Differentiate both sides with respect to time t,

dR/dt = P*du/dt +u*dP/dt

Since dP/dt = +5%, and du/dt = +2%, then,

dR/dt = P*(2%) +u*(5%) -----------------------answer.