
Gene G. answered 03/10/17
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Retired Electrical Engineer - ACT Prep, Free Official Practice Tests
The change in the number of cakes is ΔN/Δp = -15/5 = -3 (cakes/dollar) at the current price.
ΔN = (-3)Δp = -3Δp
The change in p from the current price is:
Δp = p-200.
The change in the number of cakes is that difference times the rate of change: -3.
N becomes the current sales volume plus ΔN.
N = 750 - 3(Δp)
N = 750 - 3(p-200)
N = 750 + 600 - 3p
N = 1350 - 3p
Check: Under current business conditions:
N = 1350 - 3(200) = 1350-600 = 750
At p = 205:
N = 1350 - 3(205) = 1350-615 = 735