Question 53347
Helen's Health Foods usually sells 400 cans of ProPac Muscle Punch per week when the price is $5.00 per can. After expermenting with prices for some time, Helen has determined that the weekly demand can be found by using this equation. d=600-40p; where d is the number of cans and p is the price per can.
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A. Will Helen sell more or less Muscle Punch if she raises her price from $5.00?
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If she increases the price, she will increase the value of 40P which is subtracted, so she will sell less with an increase in price.
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B. What happens to her sales every time she raises her price by $1.00?
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Because of the "-40*P" in the equation she will reduce sales by 40 for each $1 increase in price:
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Try it:
600 - 40(5) = 400; the original price of 5$
600 - 40(6) = 360; the price raised to $6