Question
Suppose that there were 25 people who had a reservation price of $\$ 500$ and the 26 th person had a reservation price of $\$ 200$. What would the demand curve look like?
Step 1
The reservation price is the maximum price that a consumer is willing to pay for a good or service. In this case, we have 25 people with a reservation price of $500 and the 26th person with a reservation price of $200. Show more…
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When the price, $p$, charged for a boat tour was $25, the average number of passengers per week, $N$, was 500 . When the price was reduced to $20, the average number of passengers per week increased to $650 .$ Find a formula for the demand curve, assuming that it is linear.
When the price, $p$, charged for a boat tour was $$\$ 25$$, the average number of passengers per week, $N$, was 500 . When the price was reduced to $$\$ 20$$, the average number of passengers per week increased to $650 .$ Find a formula for the demand curve, assuming that it is linear.
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