Ajewelry manufacturer has determined the expense equation for necklaces to be e=1,250q+800,000, where q is the quantity demanded. at a particular price, the break even revenue is 2,600,000.a. what is the quantity demanded at the break even point ? b. if the break even revenue changes to 3.5 million, will the quantity demanded have increased or decreased? explain.

A. 1,440.

B. The quantity demanded have increased.      

Step-by-step explanation:  

We have been given that a jewelry manufacturer has determined the expense equation for necklaces to be E=1,250q+800,000, where q is the quantity demanded. At a particular price, the break even revenue is 2,600,000.

A. We can find the quantity demanded at the break even point by substituting E=2,600,000 in our given equation.

Therefore, quantity of necklaces demanded at the break even point is 1,440.

B. Now let us substitute E=3500000 in our given equation to find if the quantity demanded have increased of decreased.

Therefore, the quantity demanded when the break even revenue changes to 3.5 million have increased as 2,160 in greater than 1,440.

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