When the unit price of a designer bag is $700 the quantity demanded is 4500 per month. When there is a decrease of $50 in the unit price, the quantity demand increases by 250 units. When the price is $100 or less, retailers are not willing to sell any designer bags; at a price of $600 they are willing to sell as much as 5500 designer bags per month. If it is assumed that the demand and supply functions are linear. i. Find the demand function | ii. Find the supply function iii. Find the approximate equilibrium quantity and price

When the unit price of a designer bag is $700 the quantity demanded is 4500 per month. When there is a decrease of $50 in the unit price, the quantity demand increases by 250 units. When the price is $100 or less, retailers are not willing to sell any designer bags; at a price of $600 they are willing to sell as much as 5500 designer bags per month. If it is assumed that the demand and supply functions are linear. i. Find the demand function | ii. Find the supply function iii. Find the approximate equilibrium quantity and price

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter3: Polynomial Functions

Section3.5: Mathematical Modeling And Variation

Problem 5ECP

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