a. Suppose a market research company finds that at a price of p = $40, they would sell x = 27 tiles each month. If they lower the price to p = $15, then more people would purchase the tile, and they can expect to sell x = 47 tiles in a month’s time. Find the equation of the line for the demand equation. Write your answer in the form p = mx + b. Hint: Write an equation using two points in the form (x,p).
if we have (p,x) then our data points are:
(40,27) and (15,47)
(x-27)/(p-40) = (47-27)/(15-40) = -20/25 = -.8
x = -.8(p-40) + 27
= -.8p + 59