Chapter 1.1, Problem 86E

Price–demand. A company manufactures notebook computers. Its marketing research department, using statistical techniques, collected the data shown in Table 9, where p is the wholesale price per computer at which x thousand computers can be sold. Using special analytical techniques (regression analysis), an analyst produced the following price–demand function to model the data:

  $p(x)=\text{2},000-\text{6}0x \text{1}\le x\le \text{25}$

Table 9 Price–Demand

x (thousands)	p($)
1	1,940
8	1,520
16	1,040
21	740
25	500

1. (A)   Plot the data points in Table 9, and sketch a graph of the price–demand function in the same coordinate system.
2. (B)   What would be the estimated price per computer for a demand of 11,000 computers? For a demand of 18,000 computers?