Pricing - Demand Function

It doesn't matter which way you calculate A. However what you have done is wrong because you have 0.04 appearing for some reason. B = 80/500 = 0.16 Therefore A = 400 + (0.16 x 5,000) = 1,200. Have you watched my free lectures on pricing?

In that case you must have copied out the question wrongly, because on what you originally typed b is certainly not 0.04 (it is 0.16) and a is certainly not 600 (it is 1,200). (You can see that it is wrong yourself, if A was 600 and B was 0.04, then when demand is 5,500 the price would be 600 - (0.04 x 5,500) = 380, which is not the price that you typed out in your first post!).

Well maybe there is a fault on your calculator, because you wrote that you had got: A = 400 + (0.04 x 5,000) That is correct and is equal to 600 !!

You are welcome :-)