Question

A company that produces lawn chairs uses market surveys and linear regression to develop a demand function based on the wholesale price. The demand function is q=-110p+7500. At a price of $45 how many lawn chairs are demanded?

Answer 1

q= 2,550

Explanation:

Giving the following information:

The demand function is q=-110p+7500.

When the price is 0, the demand q is 7,500 units:

p= 0

q= -110*0 + 7,500= 7,500

Now, when the price is $45, the demand is:

p= $45

q= -110*45 + 7,500

q= -4,950 + 7,500

q= 2,550