Question

A real estate office manages an apartment complex with 40 units. When the rent is $660 per month, all 40 units are occupied. However, when the rent is $736, the average number of occupied units drops to 36. Assume that the relationship between the monthly rent p and the demand x is linear. (Note: the term demand refers to the number of occupied units.)

(a) Write a linear equation giving the demand x in terms of the rent p.

x (p) =

(b) Use a graphing utility to graph the demand equation and use the trace feature to predict the number of units occupied if the rent is raised to $755.
units

(c) Predict the number of units occupied if the rent is lowered to $717. Verify graphically.
units

Answer 1