Question 1163163: The demand for a certain product depends on the price. When the price is £10, £15 and £30, the demand is 3800, 1000, and 2800 units respectively.
(i) Determine the equation for the demand function.
(ii) What quantity will be demanded at a price of £25?
Answer by ikleyn(52878)   (Show Source):
You can put this solution on YOUR website! .
The demand for a certain product depends on the price. When the price is £10, £15 and £30,
the demand is 3800, 1000, and 2800 units respectively.
(i) Determine the equation for the demand function.
(ii) What quantity will be demanded at a price of £25?
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Hey, I am not a professional/specialist in finance/economics/production,
but regarding this problem, I can not keep myself from asking a question.
So, at the price of £10, people are ready to buy 3800 items.
If the price is slightly higher at £15, people are ready to buy only 1000 items, which is less and logical.
But when the price grows to £30, people want to buy MORE ?
Is it logical ? Or, in opposite, ILLOGICAL ?
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