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A company has found that the demand for its product varies inversely as the price of the product. When the price is 3.5 dollars, the demand is 400 units. Find a mathematical model that gives the demand in terms of the price in dollars.

User Ahmed Raza
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Final answer:

The mathematical model that reflects the inverse relationship between price and demand, as per the law of demand, is D = 1400/P, found by using the given values of price and demand.

Step-by-step explanation:

The student is asking for a mathematical model that describes the inverse relationship between the price of a product and the quantity demanded for that product.

This relationship is explained by the law of demand, which states that, ceteris paribus, as the price of a product increases, the quantity demanded decreases, and vice versa.

To find this mathematical model, we can use the information provided: when the price is $3.5, the demand is 400 units.

We can express this inverse relationship with the formula D = k/P, where D is demand, P is price, and k is a constant. Substituting the given values, we find that k = D × P

= 400 × 3.5

= 1400.

Therefore, the model that gives the demand in terms of price is D = 1400/P.

User Mkhoshpour
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