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Appendix C
Polynomials
Retail companies need to keep close track of their operations in order to maintain profitability. Often, the
sales data of each individual product is analyzed separately, which can be used to help set pricing and
other sales strategies.
Application Practice
Answer the following questions. Use Equation Editor to write mathematical expressions and equations.
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1. In this problem, we will analyze the profit found for sales of decorative tiles. A
demand equation
(sometimes called a demand curve) shows how much money people would pay for a product
depending on how much of that product is available on the open market. Often, the demand
equation is found empirically (through experiment, or market research).
a. Suppose that a market research company finds that at a price of p = $20, they would sell
x = 42 tiles each month. If they lower the price to p = $10, then more people would
purchase the tile, and they can expect to sell x = 52 tiles in a month’s time. Find the
equation of the line for the demand equation. Write your answer in the form p = mx + b.
(Hint: Write an equation using two points in the form (x,p)).
20=42m+b
10=52m+b (adding)
30=94m+2b
20=42m+b
10=52m+b (subtracting to eliminate b)
10=10m to make 10 you have to divide 10 by negative one so m is 1
10=10(1)
Now you replace 1 for m into the equation to solve for b.
10=42(1) + b
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 Winter '09
 RABANO

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