A home store chain is prepared to buy 3,800 of your Frog & Friends(TM) shower curtains per month for $5 each, but only 3,500

Question

3 years ago

14

shower curtains per month for $10 each. What is the linear demand function for your Frog & Friends shower curtains?

1 answer:

neonofarm [45] · Answer 1 · 2022-03-01T22:24:35+03:00

Answer:

The linear demand function for Frog & Friends Shower curtains is q = -60p + 4,100

Explanation: $5 each ===> 3,800 curtains per month

$10 each ===> 3,500 curtains per month.

===> slope of the demand line is (3800-3500)/(5-10) = 300/-5 = -60

===> demand function is q = -60p + c for some constant c.

Let 3,800 = -60*5 + c.

=3800 = -300 + c

===> c = 4,100.

Therefore the linear demand function for frog & friends curtains is q = -60p + 4,100