Solve the Problem. -The Average Value , V, of a Certain Type of Certain

question 1

Multiple Choice

Solve the problem.
-The average value , V, of a certain type of car is a linear function of the year, x. The average value was $14,460 in 1995 and depreciated to $6900 in 1998. Let x = 0 represent 1995. Write the value, V, as function of the year, x.

• A) V(x) = -2520x + 14,460
• B) V(x) = -2520x - 660
• C) V(x) = -2520x + 6900

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Definitions:

Aggregate Demand

Collective appetite for goods and services in an economic system, pegged at a particular comprehensive price level for a fixed time frame.

Short-Run Aggregate Supply

The total output of goods and services that firms in an economy are willing to produce at different price levels in the short term, holding some input prices fixed.

Classical Theory

An economic theory that emphasizes the ideas that free markets can regulate themselves through the laws of supply and demand, positing minimal government intervention.

Short Run

A period in economics where at least one factor of production is fixed and cannot be varied to influence output.