p=-1/5x+200

Cost of a Commodity. The price p, in dollars, of a certain commodity and the quantity x sold. Obey the demand equation. p= -1/5x+200

sounds true to me.

So,

what?

To understand the meaning behind the equation, let's break it down:

The equation p = -1/5x + 200 represents the relationship between the price of a commodity (p) and the quantity of that commodity sold (x). This equation is referred to as the demand equation.

In this equation, -1/5x represents the negative slope of the demand curve. It indicates that as the quantity of the commodity sold increases, the price decreases. The coefficient -1/5 signifies that for every unit increase in x, the price decreases by 1/5 of a dollar (or 20 cents).

On the other hand, the constant term 200 represents the y-intercept of the demand curve. It signifies the price of the commodity when the quantity sold is zero. In other words, when no units are sold, the price is $200.

To find the cost of the commodity:
1. Determine the desired quantity of the commodity sold (x).
2. Substitute the value of x into the equation p = -1/5x + 200.
3. Calculate the resulting value of p, which will be the cost of the commodity in dollars.

Remember, the equation assumes that the demand equation is valid for the commodity in question, and it can be used to predict the relationship between price and quantity sold.