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March 30, 2017

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a. Suppose a market research company finds that at a price of p = $30, they would sell x = 32 baskets each month. If they lower the price to p = $10, then more people would purchase the baskets, and they can expect to sell x = 52 baskets 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).

  • math - ,

    I think the equation should be

    x = mp+b

    since the price is set, and the demand follows.

    x(30) = 32
    x(10) = 52

    32 = 30p + b
    52 = 10p + b

    20p = -20
    p = -1
    b = 62

    x = -p + 62
    or, if you have a sales goal you want to meet, you can figure the price you must set by
    p = -x + 62

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