It has been discovered in a certain state that the relationship between the number of toasters demanded varies linearly with its price. When the price per item was $ 48 ,2500 items were demanded;
When the price was $ 51 , 2465 items were demanded.
Determine the price per item when 2477 toasters are demanded. $_____
Above what price will the demand be zero ? $_____
October 5th 2012, 09:33 AM
Re: Demand Question
unit demand can be expressed as a function of unit cost.
think of the $ and the number of units as x and y coordinates.
say that y is the price
and x is the demand
so find a linear y=f(x) equation that intercepts those two points and you will arrive at formula that will give you both answers.