Exploring the Essential Question
What are demand and supply, and what factors influence them?
Suppose a toy production company has introduced a new electronic toy called the Gizmo. The marketing
department produced the revenue table for the product. Examine the table, and answer the questions
that follow
Revenue Table for Gizmos
Gizmos Sold per Week Total Revenue per Week
Price per Gizmo
$12.50
1,800
$22,500
22,500
15.00
1,500
17.50
1,200
21,000
900
18,000
20.00
22.50
25.00
600
13,500
300
7,500
17.
The company first marketed Gizmos at a price of $20.00 apiece. How many Gizmos did the company sell
per week at this price? What total revenue did the company make per week at this price?
18.
Sketch a line graph to represent the demand for Gizmos. Be sure to indicate the scale and units on the x-
and y-axes.
19. Explain why the marketing department ran a total revenue test and produced the revenue table above.