Answer:
d(x) = 6.68*x + 765
Step-by-step explanation:
The demand function is a linear function of the price, then:
demand function d(x), is an equation of the type:
d(x) = p*x + b
In that equation we have two parameters p and b
and we have two points of the straight line:
P ( 1500 ; 110 )
Q ( 750 ; 125 )
1500 = p*110 + b (1)
750 = p*125 + b (2)
Subtracting (1) - (2)
1500 - 750 = (110- 125 ) + b
750 + 15 = b
b = 765 intercept on y-axis
1500 = 110*p + 775
1500 - 765 = 110 *p
p = 735/110
p = 6.68
The equation of demand is:
d(x) = 6.68*x + 765
