Answer to Question #157619 in Math for Surada

Question

`A herbal tea producer company has 24 different products in the market each are produced in one of the 3 factories owned by the company. The weights of the products in monthly sales may vary depending on time of the year (demands of certain products shift to others in each of the 4 seasons) age of the products and market conditions but yearly aggregate demand has a very strong correlation with the price of the product (Here we ignore any other factor and assume that the yearly aggregate demand is directly and linearly effected by the price). The company found out that when the price for a packet of 20 herbal tea bags is 10 TL yearly demand is 298900 packets. When the price increases to 11 TL demand decreases to 298473 packets. On the cost side the company has 1800000 TL of yearly administrative costs regardless of the price or the number of units sold including the rents depreciation of the buildings and other related assets and salaries of 58 workers (average monthly salary for white collar and blue-collar workers are 5 000TL and 3 500 TL respectively). Additionally approximately 165 TL cost per each packet or tea produced and sold (Assume that the total production is equal to total sales for the sake of simplicity) Which of the following shows the price-demand equation correctly for the yearly aggregate sales of the company? (d is demand pis price) `

Answer 1

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