Answer to Question #200799 in Economics of Enterprise for Lemessa Guta

Question

. Demand Curves. ISHO-garment is contemplating a T-shirt advertising promotion. Monthly sales data from T-shirt shops marketing indicate that

            𝑄=1,500–200𝑃

Answer 1

Give equation for demand, we can get the quantity of T-shirts sold at a given price.

Assume, $P=\$4.5 per \space (T-shirt)$

Quantity sold, $Q=1500-200\times4.5=600(T-shirts)$

Also, given the quantity, price per T-shirt can be calculated.

Assume, $Q=900(T-shirts)$

$900=1500-200P$

$200P=600$

$P=\$3$