A company estimates that 1500 units of product will be sold at Rs.110 and 750 units at a price of Rs.125. Determine the demand function.

d(x)  =  6.68*x  +  765

Step-by-step explanation:

The demand function is a linear function of the price, then:

demand function d(x), is an equation of the type:

d(x)  = p*x  + b

In that equation we have two parameters  p  and  b

and we have two points of the straight line:

P ( 1500 ;  110 )

Q ( 750  ;  125 )

1500  =  p*110  +  b       (1)

750    =  p*125 + b        (2)

Subtracting  (1)  -  (2)  

1500  -  750  =  (110- 125 ) +  b

750  + 15  =  b

b  =  765     intercept on y-axis

1500  =  110*p  + 775

1500  -  765  =  110 *p

p  =  735/110

p  =  6.68

The equation of demand is:

d(x)  =  6.68*x  +  765

true

step-by-step explanation: