Econ3410

  1. Last month the Financial Times reported that Japanese firm Akagi Nyuguyo was increasing the price of its popular children’s ice cream bar Garigari-kun for the first time in 25 years, from ¥60 to ¥70. Suppose that a 7-11 store typically sold 500 ice cream bars a day, but now expects to sell only 400 bars a day. Assuming a linear relationship between price (p) and quantity demanded (x), write down the linear price-demand function p(x)  

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Answer:

  • *******
    Now
    ** *** the *********** ** ********* p(x)=mx+b;p(x)=price
    ***
    **************** (50060) ***
    (40070)
    ************
    ** ***** /difference
    **
    demand=70-60/400-500=-1/10 ***** per *** ******* y-y1=m(x-x1)
    **
    ************************ ; *** *** *******
    ***
    ******* ************ ******* demand *** ****** =>p(x)-60=-x/10+50 ******************* =>p(x)=110-x/10 Similarlyp(x')-70=-1/10(x-400) after *** ******
    **
    *****
    ***
    ******* ************************

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