# Finding the demand function [closed]

Here is the problem:

Suppose that an oligopolist charges a price of 500 and sells 200 units of output per day. If the oligopolist increases its price about 500, quantity demanded will decline by 4 units for every 1 increase in price. On the other hand, if the oligopolist lowers price below 500, quantity demanded will increase by only 1 unit for every 1 decrease in price.

Here is what I did: point 1: (200, 500) point 2: (196, 501)

Then find slope using m=(y2-y1)/(x2-x1) and then use point-slope form for the line. I think I am interpreting the demand increase/decrease incorrectly, but am not sure?

Thanks!

• What is the question? I do not understand what you are trying to do or what question you are trying to answer. Are you trying to find the function for the demand curve? Commented May 19, 2018 at 18:46
• @ahorn Yes, I am trying to determine the demand functions. I believe the three points given are (201,499),(200,500),and(196,501). Then I found the slope between (201,499) and (200,500), and used point slope form to create one demand function. Then I found slope between (200,500) and (196,501), and used point slope form to create second demand function. I just don't know if I am correctly interpreting the question. Commented May 20, 2018 at 0:52

$Q = \begin{cases} 700 - P, & 0 \leq P\leq 500 \\ 2200 - 4P, & 500< P< 550 \end{cases}$