Demand and elasticity Based on sales data over the past year...

Question

Demand and elasticity Based on sales data over the past year, the owner of a DVD store devises the demand function $D (p) = 40 - 2 p$ , where D(p) is the number of DVDs that can be sold in one day at a price of p dollars.
a. According to the model, how many DVDs can be sold in a day at a price of $10?

a. According to the model, how many DVDs can be sold in a day at a price of $10?

Accepted Answer

Welcome back everyone. In this problem, the demand function for an article is d of p equals 96 minus 3 p. Here, d of p is the number of articles sold in a week when the price of each article is $p. If the price is $6, how many articles is sold in a week? For our answer choices, a is 114, b is 96, c is 78, and d is 16. Now, what are we trying to do here? Well, we're trying to find how many articles are sold in a week which would have been d of p. We already know that the price is $6. So that tells us that p equals 6. So, in order to figure out the demand, the number of articles sold in a week, then we need to substitute the value of p equals 6 into our demand function to figure out the number of articles sold. So, let's do that. So, given p equals 6, then, the number of articles sold in a week equals 96 minus 3 multiplied by 6. 3 multiplied by 6 is 18 and the 96 minus 18 equals 78. So what does this tell us? This tells us that the number of articles sold each week is 78 And that would have been answer choice c. Thanks a lot for watching everyone. I hope this video helped.

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