Problema Solution

The demand d for a specific product, in items per month is given by

d(p)=25+880e^(-0.18p)

where p is the price in dollars, of the product.

A) What will be the monthly demand, to the nearest unit, when the price of the product is $10 and when the price is $15?

B) What will happen to the demand as the price increases without bound?

Answer provided by our tutors

The demand d for a specific product, in items per month is given by

d(p)=25+880e^(-0.18p)

where p is the price in dollars, of the product.

A) What will be the monthly demand, to the nearest unit, when the price of the product is $10

d(10)=25+880*e^(-0.18*10)=170 units.

when the price is $15 d(15)=25+880*e^(-0.18*15).

=84.

B) What will happen to the demand as the price increases without bound?.

As the price increases demand decreses and follows exponential decay.