Problema Solution
At a unit price of $968, the quantity demanded of a certain commodity is 86 pounds. If the unit price increases to $1014, the quantity demanded decreases by 23 pounds. Find the demand equation (assuming it is linear) where p is the unit price and x is the quantity demanded for this commodity in pounds.
Answer provided by our tutors
the demand equation (assuming it is linear) where p is the unit price and x is the quantity demanded for this commodity in pounds will be
x = a*p + b, where a and b are constants that we need to find
further more we know that for p = $968 we have x = 86 pounds thus
86 = a*968 + b
for p = $1014 we have x = 23 pounds thus
23 = a*1014 + b
by solving the system of equations
a*968 + b = 86
a*1014 + b = 23
we find
a = -63/46
b = 32470/23
click here to see the step by step solution of the system of equations
the demand equation (assuming it is linear) where p is the unit price and x is the quantity demanded for this commodity in pounds is
x =(-63/46)*p + 32470/23
where p is the unit price and x is the quantity demanded for this commodity in pounds.