8000
7000
q
6000
(quantity of guitars
in tens)
p = 2
A = (2, 5791)
5000
-6
4000
3000
2000
1000
-1000
10
12
14
16
18
20
22
24
26
28
30
32
p(price in hundreds
of dollars)
Return this question to its initial state
The graph above is an example of a demand curve, which we could also call a price-demand model. Models of this type compare the selling
price of an item to the overall number of consumers willing to purchase the item at that price.
Using the graph, you may observe that ???
demand curve (price-demand model) will behave in a similar fashion.
We should expect that any
Let p stand for the selling price of AMB brand guitars, in hundreds of dollars. Then, q represents the quantity of AMB guitars demanded at that
price, in tens of guitars. Use the graph in the applet to complete the following. Notice that you may drag point A along the graph and you can
also enter an exact p value into the entry box.
(a) Suppose p = 10. The corresponding point on the demand curve is
completing the following sentences:
When the selling price of a guitar is
demand for AMB brand guitars to be
(answer should be an ordered pair). Interpret these coordinates by
hundred dollars, then the quantity demanded is
guitars when the guitars sell for $
tens of guitars. In other words, we expect the
(answer should be an ordered pair). Interpret these coordinates by
(b) Suppose p = 20. The corresponding point on the demand curve is
completing the following sentences:
When AMB brand guitars sell for a price of $
the consumer demand is expected to be for
guitars.
(c) Continue to consider the point with p = 20 from part (b). Now that you know the selling price of each guitar and quantity of guitars sold at
that price (demand), you can compute the revenue. Do this to complete the following sentences. (Be careful with the units
When the selling price of each AMB brand guitars is $
thousand dollars which is equal to
million dollars.
then the total revenue will be $
Equivalently, the total revenue will be