Aviary Industries produces and markets unfinished birdhouses to craft retailers.When graphed,the demand schedule for its birdhouses is a straight line.If one birdhouse costs $20,5,000 unfinished houses are sold.At $25,4,500 birdhouses are sold.How many birdhouses will be sold if the price per house is increased to $30?
A) 5,500
B) 4,250
C) 4,000
D) 3,750
E) 3,500

Question

Quizplus · Accepted Answer

To find the equation of the demand line, we use the two given points: 
(5000, 20) and (4500, 25)

Slope = (change in price) / (change in quantity) = (25-20) / (4500-5000) = -1/1000

Using the point-slope form of a linear equation: 
y - 20 = (-1/1000)(x - 5000) 
Simplifying: 
y = -x/100 + 520

To find the quantity demanded at $30: 
30 = -x/100 + 520 
x/100 = 490 
x = 49000

Therefore, 4,000 birdhouses will be sold if the price per house is increased to $30.

Aviary Industries Produces and Markets Unfinished Birdhouses to Craft Retailers