Explanation
Correct answer: A.
Choice A is correct. Let the economist's model be the linear function , where is the demand, is the selling price, is the slope of the line, and is the -coordinate of the -intercept of the line in the -plane, where . Two pairs of the selling price and the demand are given. Using the coordinate pairs , two points that satisfy the function are and . The slope of the function can be found using the formula . Substituting the given values into this formula yields , or . Therefore, . The value of can be found by substituting one of the points into the function. Substituting the values of and from the point yields , or . Adding to both sides of this equation yields . Therefore, the linear function the economist used as the model is . Substituting for yields . It follows that when the selling price is $ per unit, the demand is units.
Desmos solution:
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Reviewed and rewritten by CookSAT
Why the other choices are wrong
Choice B
Choice B is incorrect and may result from calculation or conceptual errors.
Choice C
Choice C is incorrect and may result from calculation or conceptual errors.
Choice D
Choice D is incorrect and may result from calculation or conceptual errors.
Student discussion
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