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?

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?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...

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