Assume the demand function is D(p) = 150 – 5p (p is price). a. What is...

Assume the demand function is D(p) = 150 – 5p (p is price).

a. What is the slope? 5(30-p) Oe=150-5p p=30

b. What is the y-intercept = 180

c. Using the definition of slope what does the demand do as price increases ∆푦 ∆푥 by $1? Demand will decrease by 2

d. Graph the function (p is on the x-axis, D(p) is on the y-axis). Hint: all you need are the x-intercept (set D(p) = 0 and solve for p) and the y-intercept. Mark those points on the graph. D(p) = y x (price)

Expert Solution

milcah answered 2 years ago

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