Question

Orange-u-happy is an orange-scented cleaning product that is manufactured in disposable cloth pads. Each box of 100 pads costs 5 to manufacture. The fixed costs for Orange-u-happy are40,000. The research development group of the company has determined the demand function to be q = -500p + 20,000, where p is the price for each box. What is the demand function for Orange-u-happy?

1) q = -500p + 20,000
2) q = 500p + 20,000
3) q = -500p - 20,000
4) q = 500p - 20,000

Answer 1

The correct demand function for the product Orange-u-happy is q = -500p + 20,000, which reflects the relationship between the price per box and the quantity demanded.

Step-by-step explanation:

The demand function for the product Orange-u-happy as given in the question is q = -500p + 20,000, where 'q' represents the quantity demanded and 'p' represents the price per box.

This equation indicates that the quantity demanded decreases by 500 units for every one unit increase in price. Hence, option 1) q = -500p + 20,000 is the correct demand function for Orange-u-happy.

The demand function for Orange-u-happy is given by q = -500p + 20,000, where q is the quantity demanded and p is the price for each box.

This equation represents a linear relationship between price and quantity demanded. The coefficient -500 indicates that for every one unit increase in price, the quantity demanded decreases by 500 units. Therefore, the correct demand function for Orange-u-happy is q = -500p + 20,000.