SOLUTION: a. Suppose a market research company finds that at a price of p = $31, they would sell x = 25 tile sets each month. If they lower the price to p = $16, then more people would purch

Algebra ->  Polynomials-and-rational-expressions -> SOLUTION: a. Suppose a market research company finds that at a price of p = $31, they would sell x = 25 tile sets each month. If they lower the price to p = $16, then more people would purch      Log On


   

Question 480351: a. Suppose a market research company finds that at a price of p = $31, they would sell x = 25 tile sets each month. If they lower the price to p = $16, then more people would purchase the tiles, and they can expect to sell x = 100 tile sets 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).
Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
You can put this solution on YOUR website!
Suppose that a market research company finds that at a price of p = $31, they would sell x = 25 tiles each month.
If they lower the price to p = $16, then more people would purchase the tile, and they can expect to sell x = 100 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.
:
We will use the slope formula and the point/slope formula, but
instead of x & y, we will use x & p
Assign the given values as follows
x1 = 25; p1 = 31
x2 = 100; p2 = 16
Find the slope
m = %2816-31%29%2F%28100+-+25%29 = %28-15%29%2F%2875%29 = -.2 is the slope
Find the equation
p - 31 = -.2(x - 25)
p - 31 = -.2x + 5
p = -.2x + 5 + 31
p = -.2x + 36 is the demand equation