Ask Question
6 May, 10:18

Suppose a statistical study finds that the demand for Brand X automobile tires is Q = 800 minus- 5P, where Q is the number of Brand X tires sold per year (in thousands of tires), and P is the price per tire. How confident would you be that this is an accurate equation for Brand X tire demand?

+4
Answers (1)
  1. 6 May, 10:21
    0
    This is a correct equation for Brand X tire demand.

    Explanation:

    We can be sure that this is an accurate equation for demand by cheking if the slope is negative as the demand decrease when the price increase

    Q = 800 - 5P

    dQ/dP = - 5

    the slope is negative the quantity decreases as price increases so this is a demand equation.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose a statistical study finds that the demand for Brand X automobile tires is Q = 800 minus- 5P, where Q is the number of Brand X tires ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers