A transistor-set manufactures finds that at 500 per transistor-set, its Sales are 2000 sets per month. However at 7 450 per set, the sales are 2,400 sets. Determine the demand equation assuming it to be linear.
Answers
Given : A transistor-set manufactures finds that at 500 per transistor-set, its Sales are 2000 sets per month.
However at 450 per set, the sales are 2,400 sets.
To Find : the demand equation assuming it to be linear.
Solution:
Let say demand = Q
Price of product = P
Q = aP + b is the demand equation as its linear
at 500 per transistor-set, its Sales are 2000 sets per month.
=> 2000 = 500a + b
at 450 per set, the sales are 2,400 sets.
=> 2400 = 450a + b
=> -400 = 50a
=> a = - 8
2000 = 500a + b
=> 2000 = 500(-8) + b
=> b = 6000
Q = aP + b
=> Q = -8P + 6000
=> Q = 6000 - 8P
Q = 6000 - 8P is demand equation
where Q is demand and P is the price
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