If demand for a product is 3,500 when the price is 7 Turkish Lira (TRY) and falls to 1,000 when the price is TRY 18 which of the following options is the correct linear demand function? A) p_r(x) = 22.4 - 0.0044x B) p_r(x) = 22.4 + 0.0044x C) p_r(x) = -22.4 - 0.0044x D) p_r(x) = -22.4 + 0.0044x

Question

Quizplus · Accepted Answer

The correct linear demand function can be found by using the two given points (3500, 7) and (1000, 18) to calculate the slope (m) and then using one of the points to solve for the y-intercept (b) in the equation p = mx + b. The slope m = (18 - 7) / (1000 - 3500) = 11 / (-2500) = -0.0044. Using the point (3500, 7), we can solve for b: 7 = -0.0044(3500) + b, which gives b = 22.4. Thus, the correct equation is p = 22.4 - 0.0044x.

If Demand for a Product Is 3,500 When the Price