Question

The quantity demanded for an iPad is 210 units when the unit price is set at $310. The quantity demanded is 1030 units when the price is $240. Find the demand equation. (Here x is the quantity and p is the unit price.)

a) p=−0.7x+485
b) p=−0.7x+345
c) p=−1.5x+485
d) p=−1.5x+345

Answer 1

The demand equation is p = -0.7x + 485. The correct answer is a) p = −0.7x + 485.

Step-by-step explanation:

To find the demand equation, we can use the point-slope form of a linear equation. We have two points: (210, 310) and (1030, 240).

First, we can find the slope:

slope = (change in y)/(change in x) = (240 - 310)/(1030 - 210) = -0.7

Next, we can use one of the points and the slope in the point-slope form equation: p - 310 = -0.7(x - 210).

Simplifying the equation, we get p = -0.7x + 485.

Therefore, the demand equation is p = -0.7x + 485, so option a) is the correct answer.