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14 July, 06:30

A home store chain is prepared to buy 3,800 of your Frog & Friends (TM) shower curtains per month for $5 each, but only 3,500 shower curtains per month for $10 each. What is the linear demand function for your Frog & Friends shower curtains?

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  1. 14 July, 07:27
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    The linear demand function for Frog & Friends Shower curtains is q = - 60p + 4,100

    Explanation: $5 each = ==> 3,800 curtains per month

    $10 each = ==> 3,500 curtains per month.

    ===> slope of the demand line is (3800-3500) / (5-10) = 300/-5 = - 60

    ===> demand function is q = - 60p + c for some constant c.

    Let 3,800 = - 60*5 + c.

    =3800 = - 300 + c

    ===> c = 4,100.

    Therefore the linear demand function for frog & friends curtains is q = - 60p + 4,100
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