Suppose a statistical study finds that the demand for Brand X automobile tires is Q = 800 minus−5P, where Q is the number of B

Question

3 years ago

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Suppose a statistical study finds that the demand for Brand X automobile tires is Q = 800 minus−5P, where Q is the number of B

rand 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?

Business

1 answer:

tiny-mole [99] · Answer 1 · 2022-07-08T04:42:05+03:00

Answer:

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.

Suppose a statistical study finds that the demand for Brand X automobile tires is Q​ = 800 minus−​5P, where Q is the number of B

Suppose a statistical study finds that the demand for Brand X automobile tires is Q = 800 minus−5P, where Q is the number of B