A company assumes a linear relationship exists between the consumer demand for its
product and the price charged, p.
When the price of its product was $4 per unit, the weekly quantity demanded was 302
units, and when the unit price was raised to $5, the weekly quantity demanded
dropped to 296 units.
A) Write a formula for D, the weekly quantity demanded for the product when the
price per unit is p dollars.
B) Suppose also that there is a linear relationship between the quantity supplied S of
the product and the unit price. p. Suppose that the weekly quantity supplied is 254
when the price is $5 and that the quantity supplied rises by 8.4 units when the price
rises by $1.4. Write a formula for S, the weekly quantity supplied when the price of
the product is p dollars.
C) The market clearing price or equilibrium point is the price at which supply equals
demand. Find the market clearing price for the product.
State whether the system of equations illustrated by each graph has “One solution”, “No
solution”, or “Infinitely many solutions”.