Math Problem Statement
The demand function for a product is modeled by p = 13,000
1 − 7 7 + e−0.001x
. Find the price p (in dollars) of the product when the quantity demanded is x = 1000 units and x = 1500 units. What is the limit of the price as x increases without bound? (a) x = 1000 units (Round your answer to two decimal places.) $
(b) x = 1500 units (Round your answer to two decimal places.) $
(c) What is the limit of the price as x increases without bound? $
Solution
The demand function is given as:
Let's solve for the price when , , and determine the limit as .
(a) For :
We substitute into the formula and calculate the corresponding price.
(b) For :
Substitute into the formula.
(c) Limit of the price as :
As , . Thus, the demand function simplifies to:
So, the price increases without bound as .
Now, I will calculate the values for parts (a) and (b).The calculated prices are:
(a) For units, the price is approximately dollars.
(b) For units, the price is approximately dollars.
(c) As , the price as well, meaning the price increases without bound.
Let me know if you would like more details or have any questions.
Here are some related questions:
- What happens to the price if the rate constant in the exponential changes?
- How does the price behave for small values of ?
- Can you explain how the exponential term affects the price growth?
- What if the coefficient in front of were different, how would it impact ?
- How would the demand function change if a different constant was used instead of 13,000?
Tip: Always verify exponential terms in demand functions carefully—they control the rapidity of price changes with demand.
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Math Problem Analysis
Mathematical Concepts
Exponential Functions
Limits
Demand Functions
Formulas
p(x) = 13,000 / (1 - 7 / (7 + e^(-0.001x)))
Theorems
Limit of exponential decay as x approaches infinity
Suitable Grade Level
Grades 11-12, College Level