a.Suppose that a market research company finds that at a price of p = $20, they would sell x = 42 tiles each month. If they lower the price to p = $10, then more people would purchase the tile, and they can expect to sell x = 52 tiles in a monthâ??s time. Find the equation of the line for the demand equation. Write your answer in the form p = mx b. (Hint: Write an equation using two points in the form (x,p).
(42, 20) (52,10) Therefore p = -x 62
A companyâ??s revenue is the amount of money that comes in from sales, before business costs are subtracted. For a single product, you can find the revenue by multiplying the quantity of the product sold, x, by the demand equation, p.
b.Substitute the result you found from part a into the equation R = xp to find the revenue equation. Provide your answer in simplified form., more