A company makes greeting cards and their research shows that that price and demand are related linearly: p = m x + b. They know that for every additional card they wish to sell they need to drop the price by $0.10. They also know that in order to sell 320 cards they need to set the price at $5. Find the linear equation relating price to demand.

Question

Business

Harmony Tyler

30 December, 09:15

A company makes greeting cards and their research shows that that price and demand are related linearly: p = m x + b. They know that for every additional card they wish to sell they need to drop the price by $0.10. They also know that in order to sell 320 cards they need to set the price at $5. Find the linear equation relating price to demand.

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Answers (1)

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Lyric Waller · Answer 1

Answer: p = (-0.10) x + 37

Explanation:

Given that,

A company's research shows that,

Linear equation: p = m x + b

For every additional card sold, price falls by (m) = - $0.10

Price (p) = $5

Cards sold (x) = 320 cards

Therefore,

p = m x + b

5 = - 0.10 * 320 + b

b = 37

Hence, linear equation relating price to demand is as follows:

p = (-0.10) x + 37