Question

A company makes greeting cards and their research shows that that price and demand are related linearly: p = m x + b . They know that for every additional card they wish to sell they need to drop the price by $0.10. They also know that in order to sell 260 cards they need to set the price at $7. Find the linear equation relating price to demand.

Answer 1

Answer: p = (-0.10)x + 33

Step-by-step explanation:

Given that,

p = m x + b .......(1)

Price and demand are related linearly.

m = -0.10, x = 260 and p = 7

Substituting all these in equation (1) for calculating the value of b,

7 = -0.10 × 260 + b

b = 7 + 26

b = 33

Therefore, linear equation relating price to demand is as follows:

p = (-0.10)x + 33