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94) Demand equation. Helen's Health Foods usually sells 400 cans of ProPac Muscle Punch per week when the price is $5.00 per can. After experimenting with the prices for some time. Helen has determined that the weekly demand can be found by using the equation D = 600 - 40p, Where d is the number of cans and p is the price per can.

a) Will Helen sell more or less Muscle Punch if she raises her price from $5.00?

Since the demand curve has a negative slope with respect to P, if price increases, the quantity sold decreases.

______________________________________________________________________________
b) What happens to her sales every time she raises her price by $1.00

For every unit increase in price of the product, the demand falls by 40 cans.

______________________________________________________________________________
c) Graph the equation

Section 3,2

64) Retirement pay

Retirement pay. The annual Social Security benefit of a retiree depends on the age at the time of retirement. The accompanying graph gives the annual benefit for persons retiring at ages 62 through 70 in the year 2005 or later (Social Security Administration, www.ssa.gov).
What is the annual benefit for a person who retires at age 64?
From the graph, it is clear that the annual benefit at the age of 64 is $8000 as the graph passes through the point (64, 8000)

Annual benefit at the age of 64 = $8000

At what retirement age does a person ...

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  • MSc, Meerut University
  • MPhil, Institute of Advanced Studies
  • MSc, AIT
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