Question

A company manufactures and sells video games. A survey of video game stores indicated that at a price of $69 each, the demand would be 200 games, and at a price of $39 each, the demand would be 1,100 games. If a linear relationship between price and demand exists, which of the following equations models the price-demand relationship?

(Let x represent the price per video game and y represent the demand.)
(answers are in the snip)

Answer 1

Answer: If the equilibrium is such that only 12000 units are sold for $27, then the total earnings from the given scenario is $324,000. The supply equation would then be,

       supply: 324000 = 6p   ; p = 324000/6 = 54000

       demand: 324000 = 69p ; p = 324000/69 = 4695.65 ≈ 4696