Question

According to economic theory, the demand x for a quantity in a free market decreases as the price p increases (see the figure) Suppose that the number x of DVD players people are willing to buy per week from a retail chain 2,000 at a price of $p is given by x = 0.2p + 1, 105 p s 70. Answer parts (A), (B), and (C) : 500 40 Price (dollars) 80

Answer 1

In economic theory, the law of demand states that the quantity demanded decreases as the price increases. To find the quantity demanded and price given certain values, use the equation x = 0.2p + 1,105.

Step-by-step explanation:

In economic theory, the law of demand states that the quantity demanded of a good or service decreases as the price of the good or service increases.

In this case, the equation x = 0.2p + 1,105 defines the relationship between the price p of DVD players and the quantity x that people are willing to buy per week from a retail chain.

1. Part (A): To find the quantity demanded when the price is $40, substitute p = 40 into the equation x = 0.2p + 1,105 and solve for x.
2. Part (B): To find the price at which the quantity demanded is 500, substitute x = 500 into the equation x = 0.2p + 1,105 and solve for p.
3. Part (C): To find the price at which the quantity demanded is 2,000, substitute x = 2,000 into the equation x = 0.2p + 1,105 and solve for p.

Use these steps to find the answers to parts (A), (B), and (C).