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vikki says

I’m stuck on example 6 chapter 7. Selling price £100 p.u demand 20,000 per annum. For every £2 change in selling price demand will change by 2000 units. On looking at the answer P=120-0.001Q I get where the 0.001 comes from but where do you get the 120 from?

Thanks

Vikki

johnmoffat says

The best way to remember it is : a = current selling price + b (current demand)

vikki says

Sorry can you expand please selling price is £100 plus current demand? Isn’t that 20,000 pa because b = £2/2000.

vikki says

I’ve woken up sorry I didn’t multiply 0.001 with demand of 20000 to give 20+100=120

anam says

Hi i have a lil doubt… minus minus is plus …so how we got -2500 b …we supposed to add 16000 and 13500 and get -29500 instead

johnmoffat says

Minus minus is indeed a plus.

However, we are taking minus 16,000 plus 13,500.

-16000 + 13500 = -2500

(look again – it is minus 16000!)