The demand for wooden chairs can be modeled as D(p) = -0.01p + 4.35 million chairs where p is the price (in dollars) of a chair. (a) According to the model, at what price will consumers no longer purchase chairs? 2$ per chair Is this price guaranteed to be the highest price any consumer will pay for a wooden chair? Explain. According to the model, consumers ? purchase chairs at prices of $ or higher. Since a demand schedule is a model of aggregate behavior, it ? guarantèe individual behavior. (b) What quantity of wooden chairs will consumers purchase when the market price is $79.95? (Round your answer to three decimal places.) million chairs
The demand for wooden chairs can be modeled as D(p) = -0.01p + 4.35 million chairs where p is the price (in dollars) of a chair. (a) According to the model, at what price will consumers no longer purchase chairs? 2$ per chair Is this price guaranteed to be the highest price any consumer will pay for a wooden chair? Explain. According to the model, consumers ? purchase chairs at prices of $ or higher. Since a demand schedule is a model of aggregate behavior, it ? guarantèe individual behavior. (b) What quantity of wooden chairs will consumers purchase when the market price is $79.95? (Round your answer to three decimal places.) million chairs
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter3: Polynomial And Rational Functions
Section3.1: Quadratic Functions And Models
Problem 58E
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Transcribed Image Text:The demand for wooden chairs can be modeled as
D(p) = -0.01p + 4.35 million chairs
where p is the price (in dollars) of a chair.
(a) According to the model, at what price will consumers no longer purchase chairs?
per chair
Is this price guaranteed to be the highest price any consumer will pay for a wooden chair? Explain.
According to the model, consumers ?
purchase chairs at prices of $
or higher. Since a demand schedule is a model of aggregate behavior, it ?
guarantèe individual
behavior.
(b) What quantity of wooden chairs will consumers purchase when the market price is $79.95? (Round your answer to three decimal places.)
million chairs
(c) Calculate the market price at which 4 million wooden chairs are in demand.
per chair
(d) Calculate the consumers' surplus when consumers purchase 4 million wooden chairs.
$
million
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