a. Suppose a market research company finds that at 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 an equation using two points in the form (x,p).

Question

a.	Suppose a market research company finds that at 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 an equation using two points in the form (x,p).

dumbcow · Answer

2 points are
(42,20)
(52,10)
m = (10-20)/(52-42) = -10/10 = -1
20 = (-1)(42) +b
b=62

p =-x +62

anonymous · Answer

b.	Substitute the result you found from part a. into the equation R = xp to find the revenue equation. Provide your answer in simplified form.

dumbcow · Answer

R=x(-x+62) = -x^2 +62x