1) a company manufactures and sells a specialty watch. the financial reserach department detemines that at the price of $88 each, the demand would be 2,000 watches and at $38 each the demand will be 12,000 watches.

Question

A) assuming a linear relationship between price and demand, find a linear function which gives the demand for the watch in terms of its price.

B) What would be the price when the demand is 8,000?

C) What would be the demand, if the company priced the watch at $65?

Answer 1

Price=m*demand+b
put in both data points...
88=m2000+b
38=m12000+b
subtract the second equation from the first.
50=-10,000m
solve for m
then put either point back in the original equation, solve for b.