SOLUTION: Demand equation. Helen’s Health Foods usually sells 400 cans of ProPac Muscle Punch per week when the price is $5 per can. After experimenting with prices for some time, Helen has
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Question 175640: Demand equation. Helen’s Health Foods usually sells 400 cans of ProPac Muscle Punch per week when the price is $5 per can. After experimenting with prices for some time, Helen has determined that the weekly demand can be found by using the equation
D = 600 – 40p
where d is the number of cans and p is the price per can.
a) Will Helen sell more or less Muscle Punch if she raises her price from $5?
b) What happens to her sales every time she raises her price by $1?
c) Graph the equation.
Answer by vleith(2983) (Show Source): You can put this solution on YOUR website!
D gets smaller if p gets bigger.
So, raising the price from $5 will result in fewer sales
Every increase in p of $1 will cause her sales to drop by 40 units
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