Homework Help is Here – Start Your Trial Now!
Business
Economics
1. In economics, the demand for a product is the amount of that product that consumers are willing to buy at a given price. The quantity demanded of a product usually decreases if the price of that product increases. Suppose that a company believes there is a linear relationship between the demand for its product and its price. The company knows that when the price of its product was $3 per unit, the quantity demanded weekly was 500 units, and that when the unit price was raised to $4, the quantity demanded weekly dropped to 300 units. Let D represent the quantity demanded weekly at a unit price of p dollars. Find a formula for D in terms of p. b. The company raises the price of the product and that the new quantity demanded weekly is 50 units. What is the new price? c. Give an economic interpretation of the slope of the function you found in part a). d. Find D when а. = 0. Find p when D = 0. Give economic interpretations of both of these results.

1. In economics, the demand for a product is the amount of that product that consumers are willing to buy at a given price. The quantity demanded of a product usually decreases if the price of that product increases. Suppose that a company believes there is a linear relationship between the demand for its product and its price. The company knows that when the price of its product was $3 per unit, the quantity demanded weekly was 500 units, and that when the unit price was raised to $4, the quantity demanded weekly dropped to 300 units. Let D represent the quantity demanded weekly at a unit price of p dollars. Find a formula for D in terms of p. b. The company raises the price of the product and that the new quantity demanded weekly is 50 units. What is the new price? c. Give an economic interpretation of the slope of the function you found in part a). d. Find D when а. = 0. Find p when D = 0. Give economic interpretations of both of these results.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

HI I need the answer to this question thank you !

1. In economics, the demand for a product is the amount of that product that consumers are willing to buy at a given price. The quantity demanded of a product usually decreases if the price of that product increases. Suppose that a company believes there is a linear relationship between the demand for its product and its price. The company knows that when the price of its product was $3 per unit, the quantity demanded weekly was 500 units, and that when the unit price was raised to $4, the quantity demanded weekly dropped to 300 units. Let D represent the quantity demanded weekly at a unit price of p dollars. Find a formula for D in terms of p. b. The company raises the price of the product and that the new quantity demanded weekly is 50 units. What is the new price? Give an economic interpretation of the slope of the function you found in part a). d. Find D when p а. С. = 0. Find p when D = 0. Give economic interpretations of both of these results.
Transcribed Image Text:1. In economics, the demand for a product is the amount of that product that consumers are willing to buy at a given price. The quantity demanded of a product usually decreases if the price of that product increases. Suppose that a company believes there is a linear relationship between the demand for its product and its price. The company knows that when the price of its product was $3 per unit, the quantity demanded weekly was 500 units, and that when the unit price was raised to $4, the quantity demanded weekly dropped to 300 units. Let D represent the quantity demanded weekly at a unit price of p dollars. Find a formula for D in terms of p. b. The company raises the price of the product and that the new quantity demanded weekly is 50 units. What is the new price? Give an economic interpretation of the slope of the function you found in part a). d. Find D when p а. С. = 0. Find p when D = 0. Give economic interpretations of both of these results.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Nash Equilibrium
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS