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$20 increase/decrease in price, 50,000 decrease/increase in the number of units sold

  1. #1
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    $20 increase/decrease in price, 50,000 decrease/increase in the number of units sold

    Hi, i need a formula where for every $20 increase/decrease in price, there will be a 50,000 decrease/increase in the number of units sold, respectively.

    Price begins at $179 with a quantity of $1 000 000..

    Price must be the changing variable, therefore the formula needs to be in the quantity cell..

    Thanks in advance!

  2. #2
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    Re: $20 increase/decrease in price, 50,000 decrease/increase in the number of units sold

    Where and in what format do you need to input data?

    Mathematically, a formula for this would be P = (20/50000)*(q-1000000)+179

    where P = price and q = quantity

    This only works if you're OK with your price as a continuous function (would also be OK if you limit your quantity input to multiples of 50000 too).

  3. #3
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    Re: $20 increase/decrease in price, 50,000 decrease/increase in the number of units sold

    thats certainly on the right track.. however id prefer the function in terms of
    "Quantity = .......",
    rather than
    "Price = ........"

    the formula you provided is very close however, except it explains that a 50000 increase in quantity leads to a $20 increase in price.. i need it to be a 50000 increase in quantity leads to a $20 DECREASE in price (and vise versa).

    Is there a way to have the formula in terms of 'q='?

  4. #4
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    Re: $20 increase/decrease in price, 50,000 decrease/increase in the number of units sold

    Yes. Through algrbraic manipulation, the formula is also:
    q = (-50000*(P-179)/20)+1000000

    I did my calculations on paper and missed putting the negative sign into the formula. This should create the increase creates decrease relationship that you're looking for.
    Last edited by zumbalj; 09-18-2012 at 01:06 AM.

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