The graph above is an example of a demand curve, which we could also call a price-demand model. Models of this type compare the selling price of an item to the overall number of consumers willing to purchase the item at that price. Using the graph, you may observe that as the price gets higher (increases), the demand goes down (decreases) . We should expect that any demand curve (price-demand model) will behave in a similar fashion. Let p stand for the selling price of AMB brand guitars, in hundreds of dollars. Then, q represents the quantity of AMB guitars demanded at that price, in tens of guitars. Use the graph in the applet to complete the following. Notice that you may drag point A along the graph and you can also enter an exact p value into the entry box. (a) Suppose p=11. The corresponding point on the demand curve is (answer should be an ordered pair). Interpret these coordinates by completing the following sentences: (b) Suppose p=20. The corresponding point on the demand curve is (answer should be an ordered pair). Interpret these coordinates by completing the following sentences: When AMB brand guitars sell for a price of $ , the consumer demand is expected to be for guitars. (c) Continue to consider the point with p=20 from part (b). Now that you know the selling price of each guitar and quantity of guitars sold at that price (demand), you can compute the revenue. Do this to complete the following sentences. (Be careful with the units When the selling price of each AMB brand guitars is $, then the total revenue will be $ will be thousand dollars which is equal to million dollars. The graph above is an example of a demand curve, which we could also call a price-demand model. Models of this type compare the selling price of an item to the overall number of consumers willing to purchase the item at that price. Using the graph, you may observe that as the price gets higher (increases), the demand goes down (decreases) . We should expect that any demand curve (price-demand model) will behave in a similar fashion. Let p stand for the selling price of AMB brand guitars, in hundreds of dollars. Then, q represents the quantity of AMB guitars demanded at that price, in tens of guitars. Use the graph in the applet to complete the following. Notice that you may drag point A along the graph and you can also enter an exact p value into the entry box. (a) Suppose p=11. The corresponding point on the demand curve is (answer should be an ordered pair). Interpret these coordinates by completing the following sentences: (b) Suppose p=20. The corresponding point on the demand curve is (answer should be an ordered pair). Interpret these coordinates by completing the following sentences: When AMB brand guitars sell for a price of $ , the consumer demand is expected to be for guitars. (c) Continue to consider the point with p=20 from part (b). Now that you know the selling price of each guitar and quantity of guitars sold at that price (demand), you can compute the revenue. Do this to complete the following sentences. (Be careful with the units When the selling price of each AMB brand guitars is $, then the total revenue will be $ will be thousand dollars which is equal to million dollars