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An album is downloaded 7000 times per week when its price is $12. it is downloaded 17000 times per week when the price drops to $9. find the demand equation, assuming it is linear. the equation should express price pp in terms of quantity qq.

Respuesta :

carlosego
First we find the slope of the line:
 m = (12-9) / (7000-17000) = - 0.0003
 Then, the generic equation of the line is:
 p-po = m (q-qo)
 where
 (po, qo): point that belongs to the line.
 We have then:
 p-12 = (- 0.0003) (q-7000)
 Rewriting:
 p = -0.0003 * q + 2.1 +12
 p = -0.0003 * q + 14.1
 answer:
 the demand equation, assuming it is linear
 p = -0.0003 * q + 14.1
Kalahira
Let the demand equation represent a line y = m*x + c where y is the demand, x is the price, m is the coefficient and c is the constant. Given 7000 = 12*m + c and 17000 = 9m + c, we can derive the value of m and c. Calculation of the two linear equations give m = -10000/3 and c = 13000. With these data, we can calculate the demand equation as qq + 10000*pp/3 = 13000 where qq represents quantity and pp represents price.

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