Given this sketch of the demand function P=-5Q+40 (where P€ depends on Q units, P=f(Q)). %3D Compute for the maximum unit price consumers are willing to pay and show it on the sketch. Show on the demand line and explain how you found the answer to the following question: when the unit price increases by 10€, how much less units would consumers be willing to buy? Compute for the horizontal intercept. What does the horizontal intercept represent in concrete everyday language? Sketch the new demand line with the same vertical intercept but with a slope of-10. 42 39 27 24 21 18 15 12 Use the change in siope to describe the change in consumer behavior (desire, willingness) from the old demand line to the new demand line.

Given this sketch of the demand function P=-5Q+40 (where P€ depends on Q units, P=f(Q)). %3D Compute for the maximum unit price consumers are willing to pay and show it on the sketch. Show on the demand line and explain how you found the answer to the following question: when the unit price increases by 10€, how much less units would consumers be willing to buy? Compute for the horizontal intercept. What does the horizontal intercept represent in concrete everyday language? Sketch the new demand line with the same vertical intercept but with a slope of-10. 42 39 27 24 21 18 15 12 Use the change in siope to describe the change in consumer behavior (desire, willingness) from the old demand line to the new demand line.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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