Demand Functions

Question

A developer of luxury tiny homes found that when they price a particular model of home at $95,000, they sell 70 homes each month and when they price the same model at $125,000, they sell 50 homes each month.

a. Find the demand function, P(x), that gives the price in thousands of dollars at which the developer will have x customers.

b. According to the demand function you found in part (a), how many sales can the developer expect to have if they charge $100,000 per home?

c. What does the slope of P(x) mean in the context of the given situation?

d. What does the y-intercept of P(x) imply?

Answer 1

P(x) = (95 + 30x)(70 - 20x), in thousands

Use this to answer.