Posted by **boob** on Monday, October 10, 2011 at 11:53pm.

A new software company wants to start selling DVDs with their

product. The manager notices that when the price for a DVD is 16

dollars, the company sells 134 units per week. When the price is

27 dollars, the number of DVDs sold decreases to 89 units per week.

Answer the following questions:

A. Assume that the demand curve is linear. Find the demand,

q

, as

a function of price,

p

.

Answer:

q

=

- calc -
**Steve**, Tuesday, October 11, 2011 at 4:23am
If q is a linear function of p, then

q = mp + b

We know from the given data

134 = 16m + b

89 = 27m + b

45 = -11m

m = -0.2444

b = 137.9111

q = -0.2444p + 137.9111

or, roughly,

q = -1/4 p + 138

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