At a unit price of P 3,000, Christian Jewelry will supply 500 college rings. The supply is diminished by 100 rings if the unit price is decreased by 10%. (a) Set up the supply function. (b) What is the lowest price at which the item would be supplied? (c) How many rings will be supplied if the unit price is P 4,600? Solution a) P=3000,Q=500 P=2700,Q=400 (Q-500)/(P-3000)=(500-400)/(3000-2700)=1/3 3Q-1500=P-3000 Q=P/3-500 b) Q>0, P/3-500>0 P>1500 Lowest price is 1500 c) Q=4600/3-500=1533.33-500=1033.33.

1. At a unit price of P 3,000, Christian Jewelry will supply 500 college rings. The supply is
diminished by 100 rings if the unit price is decreased by 10%. (a) Set up the supply function. (b)
What is the lowest price at which the item would be supplied? (c) How many rings will be
supplied if the unit price is P 4,600?
Solution
a) P=3000,Q=500
P=2700,Q=400
(Q-500)/(P-3000)=(500-400)/(3000-2700)=1/3
3Q-1500=P-3000
Q=P/3-500
b) Q>0,
P/3-500>0
P>1500
Lowest price is 1500
c) Q=4600/3-500=1533.33-500=1033.33