## Related questions with answers

The following table shows projected worldwide sales of (all) cell phones and wholesale prices:

$\begin{matrix} \text{Year} & \text{2004} & \text{2008}\\ \text{Wholesale Price (\$)} & \text{100} & \text{80}\\ \text{Sales (millions)} & \text{600} & \text{800}\\ \end{matrix}$

a. Use the data to obtain a linear demand function for cell phones, and use your demand equation to predict sales if the price was set at $85. b. Fill in the blanks: For every ____ increase in price, sales of cell phones decrease by ___ units.

Solution

Verified#### a.

A linear demand function expresses demand $q$ (quantity of items demanded) as a function of the unit price $p$ (the price per item),

$q=mp+b$

The table gives us two points on the graph

$\left\{\begin{array}{l} (p_{1},q_{1})=(100,600)\\ \\ (p_{2},q_{2})=(80,800) \end{array}\right.$

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