Question

Demand the demand function for a product is modeled by

Answer 1

Answer:

Step-by-step explanation:

Given that demand function for a product is modeled by

$p = 10,000(1- \frac{3}{3+e^-0.001x} ).$

where p = price in dollars and

x= units demanded

a) When x=1000, we substitute 1000 for x

$p = 10,000(1- \frac{3}{3+e^-0.001*1000} ).$

$p = 10,000(1- \frac{3}{3+e^-1} )=1092.318$

i.e. price is 1092.32 dollars

b) X = 1500

$p = 10,000(1- \frac{3}{3+e^-0.001*1500} ).$

$p = 10,000(1- \frac{3}{3+e^-1.5} )=692.28$

i.e. price is 692.28 dollars

c) When x increases without bound exponent with negative power becomes 0 making price = 10000(1-3/3) =0