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Homework answers / question archive / For a linear demand function with a slope of -0
For a linear demand function with a slope of -0.5, the demand is 24 while the unit sales price is 108 TL. If the demand triples, find the unit selling price that will occur.
Q(d) = a - bP
Q(d) represents the demand for a good
P represents the price of that good.
a = constant factor
Here,
Q(d) = a - bP
24 = a - (-0.5)*108
a = 30
If the demand gets triples, then unit selling price is
Q(d) = a - bP
24*3 = 30 - (-0.5)*P
P = 84