For a linear demand function with a slope of -0

Finance Dec 26, 2020

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.

Expert Solution

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

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