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?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 21P

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