In Unit 3 Business Economics we are told that D = AR, but why is this?
AR is average revenue, and the calculation for average revenue is Total Revenue / Quantity.
Total Revenue = Price * Quantity
Therefore AR = Price * Quantity / Quantity => Price (as the Quantity is cancelled out)
Hence AR = P, and D = P so we can say that D = AR.
Why D=P can you please explaain
The demand curve tells us for every price what is the quantity demanded. Therefore D=P. If the price equals average revenue (as explained above) then the demand function also tells us this, as it is telling us the quantity demanded for each price point.