How do you solve this?

Question

A grocer knows that if he sells his canned hams for $8 each, he can sell 950 per month, and if he sells the same hams for $10, he will sell 900 per month. Assuming the relationship between price and sales is linear, write and equation you could use to predict sales for other prices.

Answer 1

Let Price=x value (independent variable)

 

Let Sales=y value (dependent variable)

 

use y=mx+ b, where m is slope and b is y-intercept.

 

Determine value of m:

 

m=(900 - 950)/(10-8) or -50/2 or -25

 

Determine value of b:

Use the x,y coordinates of (8, 950)

 

950=-25(8) + b

1150=b

 

Final Answer:

y=-250x + 1150, where y is the sales revenue generated and x is the selling price per item.