Question

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.

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