Final answer:
When the price of Coke products rises from $1.75 to $2.05, the weekly demand for the product decreases due to the inverse relationship between price and demand, known as the law of demand. To calculate the new demand, a constant can be determined using the initial conditions, and then applied to find the new demand level. The expected weekly demand at the price of $2.05 would be approximately 1921 units.
Step-by-step explanation:
Ana found that the demand for Coke products varies inversely as the price of the product. This is an example of the law of demand, which suggests that as prices rise, quantity demanded falls, and vice versa. To calculate the change in demand based on this inverse relationship, we can set up a proportion since we know the demand when the price is $1.75.
Using the initial condition: Price x Demand = Constant. So, $1.75 x 2250 = Constant. Therefore, the Constant = $3937.50. Now, let's find the weekly demand when the price is raised to $2.05.
Using the constant and the new price, we have:
$2.05 x Demand = $3937.50. Solving for Demand gives us: Demand = $3937.50 / $2.05 which equals approximately 1921 units. Thus, the weekly demand expected when the price is $2.05 would be around 1921 units.