Show that AR curve and demand curve are the same. - Vidyadip

Question

Show that AR curve and demand curve are the same.

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Answer

A buyer's demand curve graphically represents the quantities demanded by a buyer at various prices. In other words, it shows the various levels of average revenue at which different quantities of the goods are sold by the seller. Therefore, in economics, it is customary to refer AR curve as the Demand Curve of a firm.$\text{Average Revenue}=\frac{\text{Total Revenue}}{\text{Quantity}}$
$\frac{\text{Price}\times\text{Quantity}}{\text{Quantity}}=\text{Price}$
$\text{AR}=\text{P}(\text{price})$

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