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:

p(x)=13,000177+e0.001xp(x) = \frac{13,000}{1 - \frac{7}{7 + e^{-0.001x}}}

Let's solve for the price pp when x=1000x = 1000, x=1500x = 1500, and determine the limit as xx \to \infty.

(a) For x=1000x = 1000:

We substitute x=1000x = 1000 into the formula and calculate the corresponding price.

p(1000)=13,000177+e0.0011000p(1000) = \frac{13,000}{1 - \frac{7}{7 + e^{-0.001 \cdot 1000}}}

(b) For x=1500x = 1500:

Substitute x=1500x = 1500 into the formula.

p(1500)=13,000177+e0.0011500p(1500) = \frac{13,000}{1 - \frac{7}{7 + e^{-0.001 \cdot 1500}}}

(c) Limit of the price as xx \to \infty:

As xx \to \infty, e0.001x0e^{-0.001x} \to 0. Thus, the demand function simplifies to:

p(x)13,000177=13,00011=p(x) \to \frac{13,000}{1 - \frac{7}{7}} = \frac{13,000}{1 - 1} = \infty

So, the price increases without bound as xx \to \infty.

Now, I will calculate the values for parts (a) and (b).The calculated prices are:

(a) For x=1000x = 1000 units, the price is approximately 260,363.65260,363.65 dollars.

(b) For x=1500x = 1500 units, the price is approximately 420,833.71420,833.71 dollars.

(c) As xx \to \infty, the price p(x)p(x) \to \infty 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:

  1. What happens to the price if the rate constant in the exponential changes?
  2. How does the price behave for small values of xx?
  3. Can you explain how the exponential term affects the price growth?
  4. What if the coefficient in front of e0.001xe^{-0.001x} were different, how would it impact p(x)p(x)?
  5. 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