How many subscribers will discontinue after an increase of Rs x in annual fee?
How many subscribers will discontinue after an increase of Rs x in annual fee?
Official answer
Since 10 subscribers discontinue for every Rs 1 increase in fee, an increase of Rs x causes subscribers to discontinue.
Marking scheme
- 1.1 mark: correct expression for the number of subscribers who discontinue.
Hint
Multiply the rate (10 subscribers per Rs 1 increase) by the increase amount x.
Quick oral answer
Since 10 subscribers leave for every Rs 1 increase, a Rs x increase causes subscribers to discontinue.
Common mistakes
- 1.Writing the relationship as or instead of the correct .
- 2.Ignoring units and forgetting x itself represents the rupee increase, not a subscriber count.
Analysis and explanation
This is the first, foundational step of the case study — translating a verbal rate ("10 subscribers discontinue per Rs 1 increase") into an algebraic expression in x.
Concept
- The relationship is directly proportional: rate of discontinuation × increase amount = .
Exam trap
- A common error is writing or instead of the correct product , confusing the rate with a ratio.
Interesting facts
This kind of 'linear demand response' model (demand falls linearly with price rise) is the simplest and most widely used model in introductory microeconomics and revenue optimisation.
Subscription businesses (OTT platforms, delivery apps) use exactly this kind of price-elasticity modelling in real pricing strategy decisions.
Question details
Q36 of 44 questions
- Board
- CBSE
- Class
- Class 12
- Subject
- Mathematics
- Year
- 2026
- Section
- Section E
- Marks
- 1
- Chapter
- Application of Derivatives
- Topic
- Application of Derivatives — Setting up a Revenue Function
- Bloom's level
- understand
- Syllabus topic
- Unit 6: Application of Derivatives — Maxima and Minima (Case Study: Modelling Revenue as a Function of Price Increase)
- Author
- CBSE
- Reviewed by
- Padhantu Academic Team
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Frequently asked questions
Why is the relationship and not ?
Because the rate given is 10 subscribers per Rs 1, so for an increase of x rupees, the total number who leave is 10 multiplied by x, i.e., .