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11 February, 04:40

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?

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  1. 11 February, 06:59
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    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.
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