The demand for your college newspaper is 1200 copies per week if the paper is given a way free of charge, and the demand drops to 600 if the charge is $0.10 per copy. However, the university is prepared to supply only 500 copies per week free of charge but will supply 2500 per week at $0.50 per copy. At what price should the college newspapers be sold so that there is neither a surplus nor a shortage of papers?

Question

Quizplus · Accepted Answer

Let x be the price per copy in dollars. At $0.50 per copy, the total demand is: 2500 - 5x At $0.10 per copy, the total demand is: 1200 - 10x Since the university can supply a maximum of 2500 copies, we have: 2500 - 5x = 2500, if 2500 - 5x > 0 or 2500 - 5x = 500, if 2500 - 5x < 0 Solving, we get: x = 1, if 2500 - 5x > 0 or x = 5, if 2500 - 5x < 0 Now, we need to find the price that will make the total demand equal to the total supply: 1200 - 10x = 2500 - 5x Solving, we get: x = 8/5 = 1.6 Therefore, the price per copy should be $1.60 to neither have a surplus nor a shortage of papers.

The Demand for Your College Newspaper Is 1200 Copies Per