Question

A manufacture has been selling 1300 television sets a week at $390 each. A market survey indicates that for each $25 rebate offered to a buyer, the number of sets sold will increase by 250 per week. a) Find the demand function p ( x ) , where x is the number of the television sets sold per week.

Answer 1

P = - 0.1x+520

Explanation:

Finding the demand function p ( x ) , where x is the number of the television sets sold per week.

each $25 rebate offered to the buyer, the number of sets sold will increase by 250 , hence slope = -25/250 = -1/10 Equation will be

P-390/x-1300 = -25/250

Cross multiplying

250(P-390) = -25(x-1300)

250p-97500 = -25x+32500

250p = -25x+32500+97500

250p = -25x + 130000

Divide both sides by 250

250p/250 = (25x + 130000)/250

P = - 0.1x+520

Hence, the demand function p(x) is

= - 0.1x+520