Suppose the demand for new automobiles in the United States is described by the equation Qd = 5.3 - 0.1P where Qd is the number of new automobiles demanded per year (in millions) when P is the average price of an automobile (in thousands of dollars). a. What is the quantity of automobiles demanded per year when the average price of an automobile is $15,000? When it is $25,000? When it is $35,000? b. Sketch the demand curve for automobiles. Does this demand curve obey the law of demand?
Suppose the demand for new automobiles in the United States is described by the equation Qd = 5.3 - 0.1P where Qd is the number of new automobiles demanded per year (in millions) when P is the average price of an automobile (in thousands of dollars). a. What is the quantity of automobiles demanded per year when the average price of an automobile is $15,000? When it is $25,000? When it is $35,000? b. Sketch the demand curve for automobiles. Does this demand curve obey the law of demand?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose the
by the equation Qd = 5.3 - 0.1P where Qd is the number of new automobiles
demanded per year (in millions) when P is the average
automobile (in thousands of dollars).
a. What is the quantity of automobiles demanded per year when the average
price of an automobile is $15,000? When it is $25,000? When it is
$35,000?
b. Sketch the demand curve for automobiles. Does this demand curve obey
the
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