• Nov 29th 2006, 10:20 AM
fancyface
Demand Equation : Helen's Health foods usuallt sells 400 cans of Pro pac Muscle Punch per week when the price is \$5 per can. After experimenting with prices for sme time, Helen has determined that the weekly demand can be found by using the equation

d+600-40p

Where d is thenumber of cans and p is the price per can.

Will Helen sell more or less Muscle Punch if she reaises her price from \$5?

What happesn to her sales everytime she raises her price \$1?

Need help with this not good with story problems, Please :confused:
• Nov 29th 2006, 12:13 PM
CaptainBlack
Quote:

Originally Posted by fancyface
Demand Equation : Helen's Health foods usuallt sells 400 cans of Pro pac Muscle Punch per week when the price is \$5 per can. After experimenting with prices for sme time, Helen has determined that the weekly demand can be found by using the equation

d=600-40p

Where d is thenumber of cans and p is the price per can.

Will Helen sell more or less Muscle Punch if she reaises her price from \$5?

No the coeficient of price in the demand function is negative so demand
falls with increasing price.

Quote:

What happesn to her sales everytime she raises her price \$1?
Demand/sales will fall by 40 units.

RonL