CIMA P2 Chapter 15 Test – PricingForums › Ask CIMA Tutor Forums › Ask CIMA P2 Tutor Forums › CIMA P2 Chapter 15 Test – PricingThis topic has 1 reply, 2 voices, and was last updated 6 years ago by Cath.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts January 9, 2019 at 7:26 pm #500502 reaconParticipantTopics: 5Replies: 3☆On Q1 it asks what the price would be if demand is 225 when:$30 = 100 units $27 = 150 unitsThe answer is $22.50 but I can’t work out why? February 3, 2019 at 11:29 pm #504072 CathParticipantTopics: 0Replies: 446☆☆☆Hi, Thanks for your question. if you have watched the lectures – you should be familiar with the expression:P = a -bQwhere P is price ( which you are trying to find out) Q is quantity – in your case 225 units.‘a’ and ‘b’ must be calculated using the existing data which is given….a = current price + ((current qty/ change in qty when price changes by $z) *$z)therefore using the info given a = 27 +(150/50)*$3) a = 36b = change in price / change in quantity b = 3 / 50 b = 0.06so the full expression here is: P = 36 – 0.06Q so if Q = 225 then P = 36 – 0.06*225 P = 36 – 13.5 P = 22.5I hope this helps ?AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In