SOLUTION: A company makes t-shirts and their research shows that that price and demand are related linearly:
p
=
m
x
+
b
.
p=mx+b.
They know that in order to sell 5 shirts they nee
Question 1144516: A company makes t-shirts and their research shows that that price and demand are related linearly:
p
=
m
x
+
b
.
p=mx+b.
They know that in order to sell 5 shirts they need to set the price at $42, and in order to sell 10 shirts they need to set the price at $32. Find the linear equation relating price to demand. Answer by ikleyn(52879) (Show Source):
Decreasing the price in 42-32 = 10 dollars increases the demand in 5 shirts, from 5 to 10.
Hence, the slope of the straight line of the demand function is = 0.5.
Then the function itself is
d(p) = 5 - 0.5(p - 42). (1)
CHECK it : at p= 42 you have d(p) = 5. ! Correct !
at p= 32 you have d(p) = 5 - 0.5*(32-42) = 5 - 0.5*(-10) = 5 + 5 = 10. ! Correct !
You can transform the function (1) to the form
d(p) = 5 - 0.5p + 21, or d(p) = 26 - 0.5p. Thus, m = -0.5, b = 26. ANSWER
Solved.
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