Question

For a certain product, the linear demand curve follows the equation: Quantity = 514 - 94...

For a certain product, the linear demand curve follows the equation: Quantity = 514 - 94 * Price. Calculate Maximum Willingness to Buy, according to this demand equation.

SHOWING HOW YOU GOT THE ANSWER WILL HELP THE MOST. MARKETING METRICS IS THE SUBJECT OF THE QUESTION.

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Answer #1

Maximum willingness to pay or buy is the maximum price at which a custmer would still be willing to buy the product. so it is the price till which there is demand

Q = 514-94*P

Q= Demand of product

P = Price of product

Price at which Demand,Q = 0

0 = 514- 94*P

=> P = 514/94 = 5.47

so there will be demand till price does not reach 5.47

so, Maximum willigness to Buy is 5.47

This can also be find out by plotting the Demand vs Price graph , point at which q is zero is the maximum willingness to pay or buy.

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