The Demand for Commodity X Is Represented by the Equation

question 151

Multiple Choice

The demand for commodity X is represented by the equation P = 10 - 0.2Q and supply by the equation P = 2 + 0.2Q.
-Refer to the above information.After the change in demand,the new equilibrium price is:

• A) $2
• B) $4
• C) $6
• D) $7

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Definitions:

Financial Analysis

The process of evaluating businesses, projects, budgets, and other finance-related entities to determine their performance and suitability.

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Estimates of Inputs

Projections or calculations regarding the amount or type of resources (like raw materials, labor, and capital) required to achieve a certain production output.

Flexible Production Capacity

The ability of a manufacturing system to adjust and adapt its output levels in response to changes in demand or production needs.