Problema Solution
A consumer electronics company sells 6.7 million MP3 players per month at a price of $100 apiece; when the price is lowered to $80, the company sells 10.2 million players per month. How many MP3 players can the company expect to sell per month at a price of $75?
Answer provided by our tutors
Assuming a linear relationship between price and sales:
sales=price*m + c
m=(6.7-10.2)/(100-80)=-0.175
c=6.7-(100*-0.175)=24.2
Therefore, if price = 75, sales=75*-0.175+24.2=11.075 million