The Demand for Microwaves in a Certain Country Is Given

question 27

Multiple Choice

The demand for microwaves in a certain country is given by: D = 8,000 -30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. Suppose the economy is closed. The equilibrium price of a microwave is ________ and equilibrium quantity is ________.

• A)$50; 8,000
• B)$75; 6,000
• C)$100; 5,000
• D)$125; 4,000

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Definitions:

Sales

The exchange of goods or services for money, constituting a primary activity for commercial businesses.

Scatter Diagram

A type of graph used in statistics to display values for two variables for a set of data, showing the relationship between the variables.

Linear Model

A statistical model assuming a linear relationship between the input variables (predictors) and a single output variable.

Income

The financial gain received by an individual or entity, usually through wages, investments, or business operations.