a. Suppose 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. Hint: Write an equation using two points in the form (x,p).

Question

a.	Suppose 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. Hint: Write an equation using two points in the form (x,p).

drwls · Answer

Use the form p = mx + b for both data points

20 = 42m + b
10 = 52m + b
Solve for m and b
10 = -10m
m = -1

20 = -42 + b
b = 62

So the equation is
p = 62 - x
or
x = 62 - p
x should be the dependent variable. p can be independently assigned.