The Appendix CSUPPLEMENTAL 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 (pp
0
) = m(xx
0
)
m =
1
6
6
73
79
30
24

=

=


Using (x,p) = (73, 30), the line equation is
(p30) = 1(x73)
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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 Spring '10
 Wethanad
 Marketing, Algebra, Scientific Notation, Sales

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