a. Suppose amarket research company finds that at a price of p = $20, they would sell x = 42 tiles each month. If they lower the price to p = $10, then more people would purchase the tile, and theycan expect to sell x = 52 tiles ina month’s time. Find the equation of the line for the demand equation. Writeyour answer in the form p = mx + b. Hint: Write an equation using two points inthe form (x,p).
A company’s revenue is the amount of money that comes in from sales,before business costs are subtracted. For a single product, you can find therevenue by multiplying the quantity of the product sold, x,by the demand equation, p.
b. Substitute theresult you found from part a. into the equation R = xpto find the revenue equation. Provide your answer in simplified form.
Thecosts of doing business for a companycan be found by adding fixed costs, suchas rent, insurance, and wages, and variable costs,which are the costs to purchase the product you are selling. The portion of thecompany’s fixed costs allotted to this product is $300, and the supplier’s costfor a set of tile is $6 each. Let x represent thenumber of tile sets
d. Findthe cost equation for the tile. Write your answer in the form C = mx + b
A company’s revenue is the amount of money that comes in from sales,before business costs are subtracted. For a single product, you can find therevenue by multiplying the quantity of the product sold, x,by the demand equation, p.
b. Substitute theresult you found from part a. into the equation R = xpto find the revenue equation. Provide your answer in simplified form.
Thecosts of doing business for a companycan be found by adding fixed costs, suchas rent, insurance, and wages, and variable costs,which are the costs to purchase the product you are selling. The portion of thecompany’s fixed costs allotted to this product is $300, and the supplier’s costfor a set of tile is $6 each. Let x represent thenumber of tile sets
d. Findthe cost equation for the tile. Write your answer in the form C = mx + b