MATH 117 Appendix C Version 2

MATH 117 Appendix C Version 2 - Axia College Material MAT...

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Axia College Material – MAT 117 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. First, save this file to your hard drive by selecting Save As from the File menu. Click the white space below each question to maintain proper formatting. 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 = $60 , they would sell x = 28 tiles each month. If they lower the price to p = $40 , then more people would purchase the tile, and they can expect to sell x = 38 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)). The line of the demand passes through the points (28,60) and (38,40) in the form of (x,p). Using these points, we can construct the demand equation. To do so, we first need to find the slope. = - - Slopem y2 y1x2 x1 Or in this situation: = - - Slopemof the demand line p2 p1x2 x1 Using the two points, the slope of the demand line is: , = , x1 p1 28 60 , =( , ) x2 p2 38 40 = - - Slope mof the demand line p2 p1x2 x1 = - - 40 6038 28 =- 2010 MAT 117
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=- 2 We can find the line now using the slope-intercept method since we know the slope, and 2 points on the line. We can use either point, but I will choose to use (28,60) = + y mx b Or in this situation: = + p mx b =- m 2 = b unknown = x 28 = p 60 = + p mx b =- + 60 228 b =- + 60 56 b = b 116 Thus the demand equation is: = + p mx b =- + = - p 2x 116 or p 116 2x A company’s revenue is the amount of money that comes in from sales, before business costs
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MATH 117 Appendix C Version 2 - Axia College Material MAT...

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