A business sells 30,000 units each month at a price of Tk.150 each. It is projected that monthly sales will increase by 3000 units for each Tk.4.50 reduction in price. (i) Construct the demand equation (ii) What is the highest price to be paid for this product? (iii) What is the highest quantity demanded for this product? (iv) How many units will be bought if the price is Tk.100 per unit? (v) What is the price per unit if 40,000 units were demanded? (vi) Sketch the graph of the demand equation. You have to solve only iv,v and vi.
A business sells 30,000 units each month at a price of Tk.150 each. It is projected that monthly sales will increase by 3000 units for each Tk.4.50 reduction in price. (i) Construct the demand equation (ii) What is the highest price to be paid for this product? (iii) What is the highest quantity demanded for this product? (iv) How many units will be bought if the price is Tk.100 per unit? (v) What is the price per unit if 40,000 units were demanded? (vi) Sketch the graph of the demand equation. You have to solve only iv,v and vi.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A business sells 30,000 units each month at a price of Tk.150 each. It is projected that monthly sales will increase
by 3000 units for each Tk.4.50 reduction in price.
(i) Construct the demand equation
(ii) What is the highest price to be paid for this product?
(iii) What is the highest quantity demanded for this product?
(iv) How many units will be bought if the price is Tk.100 per unit?
(v) What is the price per unit if 40,000 units were demanded?
(vi) Sketch the graph of the demand equation.
You have to solve only iv,v and vi.
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