Question 137915: I am having problems with this question.
Suppose that a market research company finds that a price of p=$20, they sell x=42 tiles each month. If they lower the price to p=$10, then more people would purchase the tile, and they can expect to sell x=52 tiles in a month's time. Find the equation of the line for the demand equation. Write your answe in the p=mx+b. I think I am getting this wrong. I think the equation looks like $20 = m(42)+b if this is wrong please send me the proper equation. Thank you if you can help.
This is not in a book.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Suppose that a market research company finds that a price of p=$20, they sell x=42 tiles each month. If they lower the price to p=$10, then more people would purchase the tile, and they can expect to sell x=52 tiles in a month's time. Find the equation of the line for the demand equation. Write your answe in the p=mx+b. I think I am getting this wrong. I think the equation looks like $20 = m(42)+b if this is wrong please send me the proper equation. Thank you if you can help.
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You have two points relating price and sales:
(42,20) and (52,10)
slope = (10-20)/(52-42) = -10/10 = -1
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Equation form p = mx+b;
you have p,x and m; solve for b
20=-1*42 + b
20 = -42 + b
b = 62
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EQUATION:
p = -x + 62
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Your work is correct.
Cheers,
Stan H.
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