Suppose a market research company finds that at a price of p = $25, they would sell x = 42 tiles each month. If they lower the price to p = $15, then more people would purchase the tile, and they can expect to sell x = 62 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).

Solution:

p = mx + b

p=25, x=42

p=15, x=62

m = -0.5

b = 46

so

p = -0.5x+ 46