Managing a Hardware Store

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barbiekaye8

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A demand equation shows how much money people would pay for a product depending on how much of that product is available on the open market. Often the demand equation is found empirically(through experiment, or market research).
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 month's time. Find the equation of the line for the demand equation. Write your answer in the form p=mx+b

I'm struggling with getting started on this problem Can you please give me some advice?
 
Is that y=mx+b? So I'm finding slope and y intercept for the question. I just need to plug in the numbers that I've been given in the word problem.
 


Yes. You're asked to find the equation of a line.

In this exercise, they've changed the name of the y-axis to the p-axis.

P represents the price that people are willing to pay as a function of availability x.

(When items are scarce, people will pay more; when the market is flooded with items, people won't pay as much. This is called "supply and demand".)

Instead of xy-coordinates, the given numbers represent xp-coordinates.

One point on this line is (42, 20).

A second point on this line is (52, 10).

In other words, when there are 42 units per month available to buy, the resulting price that people are willing to pay is $20.

When there are more units available per month (52), people are not willing to pay as much ($10).

You find the equation of the line the same way as if you were dealing with y = mx + b and (x,y) points.

Only the name of the dependent variable has changed.

 
Thanks Mark: ya done save me some typing :wink:

As Mark told you, Barbiedoll, just pretend your problem is:
find equation of straight line with 2 points (42,20) and (52,10) on it.
 
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