Price and Demand

Remember that demand is related to price: as the price increases, you expect demand to fall. In order to estimate this relationship between price and demand, Justin has conducted a brief survey, asking people, What is the highest price youd be willing to pay for this handmade cutting board? After collecting responses, he got the following results:

Max price	Responses
$20	16
$25	14
$30	12
$35	9
$40	8
$45	7
$50	6
$55	12
$60	4
$65	12

Your goal is to use this information to find a function that estimates the price as a function of x (quantity). To do this, you need the total demand (x) for each given price value ($20 up to $65). For example, 4 people said theyd be willing to pay up to $60, and 12 said theyd be willing to pay up to $65, so in reality, if the price were set at $60, youd expect all of these 16 people to be willing to pay that much. What you really need, then, is a cumulative table, where you count the total number of people who would be willing to pay each price:

Max price	Quantities
$20
$25
$30
$35
$40
$45
$50
$55
$60
$65