Math Problem Statement
A large department store is prepared to buy 3,800 of your tie-dye shower curtains per month for $4 each, but only 3,500 shower curtains per month for $9 each. What is the linear demand function for your tie-dye shower curtains? q(p) =
Solution
To find the linear demand function, , we can use the two points provided in the problem that correspond to the price-demand relationship.
Step 1: Identify the points
From the problem, we have two price-demand pairs:
- When the price is , the quantity demanded is .
- When the price is , the quantity demanded is .
These points are: and .
Step 2: Use the slope formula
The general form of a linear equation is: where is the slope of the line and is the intercept. The slope can be found using the formula: Using the points and :
Step 3: Solve for the intercept
Now that we know the slope , we can use one of the points to solve for the intercept . Using the point : Substitute and :
Step 4: Write the demand function
The linear demand function is:
Would you like further clarification or any more details on this?
Here are 5 related questions to consider:
- How does the price elasticity of demand change as the price increases?
- If the store increases the price to $7, how many shower curtains will they sell based on this model?
- How would the demand function change if the store planned to buy more or fewer curtains at different price points?
- Can we predict the revenue function based on this demand function?
- How would external factors like market competition affect this demand model?
Tip: The slope in a linear demand function reflects how sensitive quantity demanded is to price changes. A steeper slope indicates more sensitivity.
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Math Problem Analysis
Mathematical Concepts
Algebra
Linear Functions
Demand Function
Formulas
Linear equation formula: q(p) = mp + b
Slope formula: m = (q2 - q1) / (p2 - p1)
Theorems
Linear Demand Function
Suitable Grade Level
Grades 9-12
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