The demand for wooden chairs can be modeled as D(p) = -0.01p+ 4.25 million chairs where p is the price (in dollars) of a chair. (a) According to the model, at what price will consumers no longer purchase chairs? $ per chair Is this price guaranteed to be the highest price any consumer will pay for a wooden chair? Explain. According to the model, consumers ? ✓purchase chairs at prices of $ or higher. Since a demand schedule is a model of aggregate behavior, it ? (b) What quantity of wooden chairs will consumers purchase when the market price is $89.95? (Round your answer to three decimal places.) million chairs guarantee individual E
The demand for wooden chairs can be modeled as D(p) = -0.01p+ 4.25 million chairs where p is the price (in dollars) of a chair. (a) According to the model, at what price will consumers no longer purchase chairs? $ per chair Is this price guaranteed to be the highest price any consumer will pay for a wooden chair? Explain. According to the model, consumers ? ✓purchase chairs at prices of $ or higher. Since a demand schedule is a model of aggregate behavior, it ? (b) What quantity of wooden chairs will consumers purchase when the market price is $89.95? (Round your answer to three decimal places.) million chairs guarantee individual E
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
![**Demand for Wooden Chairs: An Analytic Model**
The demand for wooden chairs can be modeled as:
\[ D(p) = -0.01p + 4.25 \]
where \( p \) is the price (in dollars) of a chair.
### Analysis and Exercises
**(a)** According to the model, at what price will consumers no longer purchase chairs?
\[ \$ \_\_\_\_\_\_ \text{ per chair} \]
Is this price guaranteed to be the highest price any consumer will pay for a wooden chair? Explain.
According to the model, consumers \(\_\_\_\_\_\_\_\_\) purchase chairs at prices of \(\_\_\_\_\_\_\_\_\_\_\) or higher. Since a demand schedule is a model of aggregate behavior, it \(\_\_\_\_\_\_\_\_\_\) guarantee individual behavior.
**(b)** What quantity of wooden chairs will consumers purchase when the market price is \$89.95? (Round your answer to three decimal places.)
\[ \_\_\_\_\_\_\_\_ \text{ million chairs} \]
**(c)** Calculate the market price at which 3 million wooden chairs are in demand.
\[ \$ \_\_\_\_\_\_\_ \text{ per chair} \]
**(d)** Calculate the consumers' surplus when consumers purchase 3 million wooden chairs.
\[ \$ \_\_\_\_\_\_\_\_ \text{ million} \]
### Graphs and Diagrams
There are no accompanying graphs or diagrams. However, it may be beneficial to use the given demand equation to plot a demand curve for better visual understanding.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbcfa3f98-eb44-4f4d-86d7-8c297108b84f%2F925ae55d-d5f3-4fc0-910a-b2a01bc3b722%2F7h85lea_processed.png&w=3840&q=75)
Transcribed Image Text:**Demand for Wooden Chairs: An Analytic Model**
The demand for wooden chairs can be modeled as:
\[ D(p) = -0.01p + 4.25 \]
where \( p \) is the price (in dollars) of a chair.
### Analysis and Exercises
**(a)** According to the model, at what price will consumers no longer purchase chairs?
\[ \$ \_\_\_\_\_\_ \text{ per chair} \]
Is this price guaranteed to be the highest price any consumer will pay for a wooden chair? Explain.
According to the model, consumers \(\_\_\_\_\_\_\_\_\) purchase chairs at prices of \(\_\_\_\_\_\_\_\_\_\_\) or higher. Since a demand schedule is a model of aggregate behavior, it \(\_\_\_\_\_\_\_\_\_\) guarantee individual behavior.
**(b)** What quantity of wooden chairs will consumers purchase when the market price is \$89.95? (Round your answer to three decimal places.)
\[ \_\_\_\_\_\_\_\_ \text{ million chairs} \]
**(c)** Calculate the market price at which 3 million wooden chairs are in demand.
\[ \$ \_\_\_\_\_\_\_ \text{ per chair} \]
**(d)** Calculate the consumers' surplus when consumers purchase 3 million wooden chairs.
\[ \$ \_\_\_\_\_\_\_\_ \text{ million} \]
### Graphs and Diagrams
There are no accompanying graphs or diagrams. However, it may be beneficial to use the given demand equation to plot a demand curve for better visual understanding.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 15 images
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
