A Car Dealer Advertises a 35% Discount on All Cars

question 23

Multiple Choice

A car dealer advertises a 35% discount on all cars available in the current inventory. In addition the car dealer offers a $1800 rebate on the purchase of a new care. The dealer decides to apply the rebate first and then award the 35% discount afterwards. Let represent the sticker price of the new car. Which one of the following functions model the final price of the car once the rebate and discount have been awarded?

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Definitions:

Income Elasticity

A measure of how much the demand for a good changes in response to a change in consumers' income.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, in contrast to a normal good.

One-Of-A-Kind

An item or phenomenon that is unique and has no identical counterpart.

Perfectly Inelastic

A market condition where the quantity demanded or supplied does not change regardless of price fluctuations.