The Following Are the Equations for the Supply and Demand

question 138

Multiple Choice

The following are the equations for the supply and demand curves in the market for weezils: where Qd is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars.
-Refer to Exhibit 4-1.If consumers decide that they want 20 percent fewer weezils at every price, the equation for the new demand curve for weezils will be

• A)Qd = 20 − 1.6P.
• B)Qd = 0.2(20 − 2
• P).
• C)Qd = 0.8(20 − 2
• P).
• D)Qd = 80(20 − 2

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Definitions:

Estimated Cost

A projection or approximation of the cost associated with a particular project, product, or activity.

Cash Payback Period

The time it takes for an investment to generate enough cash flow to recoup the initial outlay.

Net Cash Flows

The difference between the cash inflows and outflows in a company during a specific period, reflecting the company’s overall liquidity position.

Estimated Cost

An approximation of the cost to complete a project, task, or transaction, made in the absence of full information.