Problema Solution
RESEARCH HAS SHOWN THAT AT A PRICE OF $230,100 NUMBER OF TV'S ARE SOLD AND IF THE PRICE IS REDUCED TO $190, THEN 200 NUMBER OF TV'S ARE SOLD.WHAT IS THE EQUATION THAT REPRESENTS THIS DEMAND CURVE AND STATE IT slope intercept FORM OF linear equation
P=mx+b
Answer provided by our tutors
Let D=mp+c
where D -no. sold
m=slope
p=price
c= y intercept
for first data set , we have p=230, D=100
equation 1
100=230*m+c
second data set , p=190, D=200
equation 2
200=190*m+c
subtraction equation 1 from 2 , we get
100=-40m
m=-2.5
so, c= 100-230m (using 1)
c=675
So, D=-2.5p+675 represents the demand as a function of price