SOLUTION: Suppose consumers will demand 60 units of a product when the price is $15 per unit and 36 units when the price is $19 each. Find the demand equation, assuming that is linear. Fin

Question 1148869: Suppose consumers will demand 60 units of a product when the price is $15
per unit and 36 units when the price is $19 each. Find the demand equation,
assuming that is linear. Find the price per unit when 42 units are demanded.
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
we need two ordered pairs (x1,y1) and (x2, y2)
we have that:
at $15 the demand is 60, and
at $19 the demand is 36
this gives us:
(15, 60) and (19, 36)
since m = (y2 - y1)/(x2 - x1), we have:
m = (36 - 60)/(19 - 15) = -24/4 = -6 (note that we have a negative slope, which is generally the case)
----------------------
y-Intercept: QD = -6P + b
(15, 60)
60 = (-6 *15) + b
60 = -90 + b
60 + 90 = b
b = 150 this is your y-intercept.
.
To make sure you got the right answer, try it with the other set of numbers:
(19, 36)
36 = (-6*19) + b
36 = -114 + b
b = 150
Sorry, I have to go. I hope you are able to do the rest by yourself.

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