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Davis+Laura+Appendix+C-SUPPLEMENTAL+Review+Comments[1] -...

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The Appendix C-SUPPLEMENTAL assignment is worth 40 points. Each problem is worth 2.5 points. Comments on particular exercises are provided below. a. Suppose that a market research company finds that at a price of p = $30, they would sell x = 73 boxes of product each month. If they lower the price to p = $24, then more people would purchase the product, and they can expect to sell x = 79 boxes of product 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)). Let x = the number of boxes sold per month. The following table shows points for the line: x = quantity p = price sold 73 30 79 24 To get the equation for the line, use (p-p 0 ) = m(x-x 0 ) m = 1 6 6 73 79 30 24 - = - = - - Using (x,p) = (73, 30), the line equation is (p-30) = -1(x-73) p = 30 – 1x + 73 p = -x + 103 I deducted 1.25 points.
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A company’s revenue is the amount of money that comes in from sales, before business costs are subtracted. For a single product, you can find the revenue by multiplying the quantity of the
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