For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand. Let
d = annual demand for a product in units
p = price per unit
Assume that a firm accepts the following price-demand relationship as being realistic:
d = 800 - 10p
where p must be between $20 and $70.
How many units can the firm sell at the $20 per-unit price? Round your answer to the nearest whole number.
d = units
At the $70 per-unit price? Round your answer to the nearest whole number.
d = units
What happens to annual units demanded for the product if the fim increases the per unit price from $26 to $27?