Question

hi how do i solve this problem?The demand equation for the Wilkinson washable computer keyboard isp = −0.02x + 60where x is the quantity demanded per month and p is the unit price in dollars.(a) What is the highest price (theoretically) anyone would pay for a washable keyboard?$ (b) What is the quantity demanded per month when the unit price is $20? units per month

Answer 1

We are told that the demand equation for the keyboard is

`p=-0.02x+60`

where x is the quantity demanded per month and p is the unit price in dollars.

This means that the when the quantity demanded rises, the unit price drops.

From the equation we can see that since this is a negative slope graph,

When x=0, p = $60 and the price drops as demand increases.

Thus, the highest price (theoretically) anyone would pay for a washable keyboard is $60, however we are told that there is no demand at this price.

b. When the unit price is $20;

inserting p = 20. we find the quantity demanded x to be;

`\begin{gathered} 20=-0.02x+60 \\ -40=-0.02x \\ x=2000 \end{gathered}`

Therefore, the quantity demanded is 2000.

c.