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Write a linear equation expressing the number of t-shirts sold each month as a function of price per t-shirt. Please be explicit about what your chosen variables represent. Find the slope and intercepts of this equation. What real life meaning do these values have?

User Jocheved
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1 Answer

8 votes

Answer:

t = c - bp

Explanation:

Where : t = number of t shirts sold per month ,

p = price per t shirt

Equation of t shirts sold in terms of price per t shirt , ie t = f (p) , is -

t = c - bp

As per law of demand - other factors remaining constant, price & sale demand of a product are inversely related to each other.

In equation- Negative intercept of 'p' in defining 't' denotes this inverse relationship. c denotes the constant autonomous value in the equation. b denotes the slope of demand equation, which signifies demand change in response to price change.

User ITarek
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