Math Problem Statement

The following table shows worldwide sales of a certain type of cell phone and their average selling prices in 2013 and 2017. Use the data to obtain a linear demand function for this type of cell phone. Predict sales if the price is raised to $385. Additionally, fill in the blank for how much sales decrease for every $1 increase in price.

Solution

The image you uploaded shows a question about a linear demand function for a specific type of cell phone. Here's a breakdown of the relevant parts:

Part (a):

  • The demand function is given as q(p)=10p+4390q(p) = -10p + 4390, where pp is the price in dollars, and q(p)q(p) represents the sales in millions of phones.
  • You're asked to predict the sales if the price is raised to $385.

We can use the given linear equation to calculate the predicted sales: q(385)=10(385)+4390q(385) = -10(385) + 4390

Let me calculate this for you.The predicted sales for this type of cell phone when the price is raised to $385 is 540 million phones.

Part (b):

  • You're asked to fill in the blank: For every $1 increase in price, the sales of this type of cell phone decrease by 10 million units.
  • This matches the slope of the linear demand function 10-10, meaning sales drop by 10 million units for each $1 increase in price.

Do you have any further questions or would you like more details on how this was calculated?

Here are 5 related questions to deepen understanding:

  1. How would the demand function change if the slope became steeper, say q(p)=15p+4390q(p) = -15p + 4390?
  2. What is the price at which sales would drop to zero?
  3. How would the sales be affected if the price dropped to $200?
  4. Can you derive a revenue function from the given demand equation?
  5. What assumptions are made about the demand for this phone model in creating a linear demand function?

Tip: In linear demand functions, the slope (rate of change in sales per price unit) is crucial in predicting consumer behavior. Understanding this helps in pricing strategies!

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Math Problem Analysis

Mathematical Concepts

Linear Equations
Algebra
Demand Functions

Formulas

q(p) = -10p + 4390
Linear Demand Function

Theorems

Slope of a Linear Function

Suitable Grade Level

Grades 10-12