Linear Functions: 1. In economics, the demand for a product is the amount of that product that consumers are willing to buy at a given price. The quantity demanded of a product usually decreases if the price of that product increases. Suppose that a company believes there is a linear relationship between the demand for its product and its price. The company knows that when the price of its product was $3 per unit, the quantity demanded weekly was 500 units, and that when the unit price was raised to $4, the quantity demanded weekly dropped to 300 units. Let D represent the quantity demanded weekly at a unit price of p dollars. a. Find a formula for D in terms of p. b. Give an economic interpretation of the slope of the function you found in part a). Find D when p = 0. EXLAIN what is going on here at this exact point. C.

Linear Functions: 1. In economics, the demand for a product is the amount of that product that consumers are willing to buy at a given price. The quantity demanded of a product usually decreases if the price of that product increases. Suppose that a company believes there is a linear relationship between the demand for its product and its price. The company knows that when the price of its product was $3 per unit, the quantity demanded weekly was 500 units, and that when the unit price was raised to $4, the quantity demanded weekly dropped to 300 units. Let D represent the quantity demanded weekly at a unit price of p dollars. a. Find a formula for D in terms of p. b. Give an economic interpretation of the slope of the function you found in part a). Find D when p = 0. EXLAIN what is going on here at this exact point. C.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter1: Introducing The Economic Way Of Thinking

Section1.A: Applying Graphs To Economics

Problem 2SQP

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