Question 179544: In this problem, we will analyze the profit fournd for sales of decorative tiles. A demand equation (sometimes called a demand curve) shows how much money people would pay for a product depending on how much of that product is avaialable on the open market. Often, the demand equation is found empirically (through experiment, or market research).
Suppose that a market research company finds that a price of p=$20, they would 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 answer in the form p=mx+b. (Hint: Write and equation using two points in the form (x,p)).
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 would 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 answer in the form p=mx+b. (Hint: Write and equation using two points in the form (x,p)).
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You have two points relating price to # of tiles: (42,20) and (52,10)
slope = (10-20)/(52-42) = -10/10 = -1
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Form is y = mx + b and you know x,y, and m ; solve for "b".
10 = -1(52) + b
b = 62
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Equation:
y = -x + 62
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Cheers,
Stan H.
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