1. The demand for your college newspaper is 2500 copies each week if the paper is given away free of charge, and drops to 1500 copies each week if the charge is 25 cents per copy. a. Let p be the price of the paper in cents and q be the number of copies demanded. Write the information above in terms of two ordered pairs. b. Assume the demand, q, is a linear function of the price per copy, p. Find the slope of the line.

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Chapter1: Making Economics Decisions
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1. The demand for your college newspaper is 2500 copies each week if the paper is given away
free of charge, and drops to 1500 copies each week if the charge is 25 cents per copy.
a. Let p be the price of the paper in cents and q be the number of copies demanded.
Write the information above in terms of two ordered pairs.
b. Assume the demand, q, is a linear function of the price per copy, p. Find the slope of
the line.
c. Fill in the blanks below to write a sentence that interprets the slope in terms of the story
of the problem.
The demand drops by,
price per copy.
copies for each
increase in the
d. Report the linear demand function.
e. The university is prepared to supply according to the model q = 25p + 800, where q is
the quantity and p is the price in cents. At what price should the college newspapers
be sold so that there is neither a surplus nor a shortage of papers? Round your answer
to the nearest cent.
Transcribed Image Text:1. The demand for your college newspaper is 2500 copies each week if the paper is given away free of charge, and drops to 1500 copies each week if the charge is 25 cents per copy. a. Let p be the price of the paper in cents and q be the number of copies demanded. Write the information above in terms of two ordered pairs. b. Assume the demand, q, is a linear function of the price per copy, p. Find the slope of the line. c. Fill in the blanks below to write a sentence that interprets the slope in terms of the story of the problem. The demand drops by, price per copy. copies for each increase in the d. Report the linear demand function. e. The university is prepared to supply according to the model q = 25p + 800, where q is the quantity and p is the price in cents. At what price should the college newspapers be sold so that there is neither a surplus nor a shortage of papers? Round your answer to the nearest cent.
e. The university is prepared to supply according to the model q = 25p + 800, where q is
the quantity and p is the price in cents. At what price should the college newspapers
be sold so that there is neither a surplus nor a shortage of papers? Round your answer
to the nearest cent.
f. According to the demand function, how many papers will you sell at that price? Round
your answer to the nearest whole number.
g. How much revenue would you earn at the equilibrium price? (Remember: Revenue =
price * quantity.)
Transcribed Image Text:e. The university is prepared to supply according to the model q = 25p + 800, where q is the quantity and p is the price in cents. At what price should the college newspapers be sold so that there is neither a surplus nor a shortage of papers? Round your answer to the nearest cent. f. According to the demand function, how many papers will you sell at that price? Round your answer to the nearest whole number. g. How much revenue would you earn at the equilibrium price? (Remember: Revenue = price * quantity.)
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