A gardner can sell 350 carrots at $2.00 each or 370 at $1.50 each. Find the linear monthly demand function for the carrots.

Question

A gardner can sell 350 carrots at $2.00 each or 370 at $1.50 each. Find the linear monthly demand function for the carrots.

 

 

Answer 1

You must first compute the slope. On a price-quantity grid, the slope is: (P2 - P1)/(Q2 - Q1) = -0.50/20 = -0.025) P = P0 - 0.025Q Now we compute P0. We'll use the price of $2 and quantity of 350 to find P0. 2 = P0 - 0.025(350) 2 = P0 - 8.75 P0 = 10.75 The linear demand equation is P = $10.75 - $0.025Q