Asked by Renee Sinclair on Jul 04, 2024
Verified
A company that produces lawn chairs uses market surveys and linear regression to develop a demand function based on the wholesale price.The demand function is q = -110p + 7,500.At a price of $45,how many lawn chairs are demanded?
A) 1,750
B) 2,550
C) 4,950
D) 12,450
Demand Function
A function that relates the quantity of a product to its price.
- Use linear regression and market surveys to establish demand functions.
Verified Answer
RM
Rosmah MoffatJul 09, 2024
Final Answer :
B
Explanation :
Substitute p = 45 into the demand function to get
q = -110(45) + 7,500 = 2,550.
Therefore, at a price of $45, 2,550 lawn chairs are demanded.
q = -110(45) + 7,500 = 2,550.
Therefore, at a price of $45, 2,550 lawn chairs are demanded.
Learning Objectives
- Use linear regression and market surveys to establish demand functions.
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