You Have Been Hired as a Marketing Consultant to Big $q = m p + b$

question 80

Multiple Choice

You have been hired as a marketing consultant to Big Book Publishing, Inc., and you have been approached to determine the best price for the hit calculus text by Whiner and Istanbul entitled Fun with Derivatives. You decide to make life easy and assume that the demand equation for Fun with Derivatives has the linear form $q = m p + b$
Where p is the price per book, q is the demand in annual sales, and m and b constants are certain constants you'll have to figure out. Your market studies reveal the following sales figures: when the price is set at $57 per book, the sales amount to 12,280 per year, when the price is set at $86 per book, the sales drop to 4,740 per year. Use these data to calculate the demand equation.

• A) \(q = 57 p - 271\)
• B) \(q = 260 p\)
• C) \(q = - 86 p + 260\)
• D) \(q = 86 p - 2,540\)
• E) \(q = - 260 p + 27,100\)

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Definitions:

Reinforcement Theory

A motivational concept that suggests behavior can be shaped by rewarding positive actions and discouraging negative ones.

Deficit Principle

A concept in motivational theory suggesting that a satisfied need is not a motivator of behavior; individuals are motivated to fulfill unmet needs.

Motivator of Behaviour

Any stimulus that drives an individual to engage in a particular behavior, often aimed at achieving a specific outcome or reward.