Suppose a mining company will supply 80,000 tons of ore per month if the price is $25 per ton but will supply only 60,000 tons per month if the price is $20 per ton. Assume the demand function is linear. Choose the correct equation for demand in the form p for price in terms of q for quantity. Round your coefficients to five decimal places.

Question

Suppose a mining company will supply 80,000 tons of ore per month if the price is $25 per ton but will supply only 60,000 tons per month if the price is $20 per ton. Assume the demand function is linear. Choose the correct equation for demand in the form p for price in terms of q for quantity. Round your coefficients to five decimal places. ​

Quizplus · Accepted Answer

We can use the point-slope form of a linear equation:

p - 20 = m(q - 60,000)

where m is the slope of the demand function.

We can find the slope using the two given points:

m = (25 - 20) / (80,000 - 60,000) = 0.001

Substituting in one of the points:

25 - 20 = 0.001(80,000)

We get:

p - 20 = 0.001(q - 60,000)

p = 0.001q + 14

Rounding to five decimal places, we get:

p = 0.001q + 14.00000

So, the correct equation for demand is:

p = 0.001q + 14

which corresponds to choice C.

Suppose a Mining Company Will Supply 80,000 Tons of Ore