The Demand Equation for a Certain Brand of GPS Navigator

question 174

Multiple Choice

The demand equation for a certain brand of GPS Navigator is x + 3p - 565 = 0, where x is the quantity demanded per week and p is the wholesale unit price in dollars. The supply equation is x - 16p + 480 = 0, where x is the quantity the supplier will make available in the market when the wholesale price is p dollars each. Find the equilibrium quantity and the equilibrium price for the GPS Navigators.

• A) equilibrium quantity 2,000 units; equilibrium price $55
• B) equilibrium quantity 400 units; equilibrium price $55
• C) equilibrium quantity 2,000 units; equilibrium price $40
• D) equilibrium quantity 400 units; equilibrium price $40

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Definitions:

Direct Forecast

predicts future trends or behaviors directly from past and present data without the use of intervening variables.

Indirect Forecast

A forecasting method that uses related indicators or market conditions, rather than direct measures, to predict future trends or demands.

Buyers' Intentions Forecast

The process of predicting future purchasing actions of consumers based on various indicators and market trends.

Sales Forecast

A projection of future sales revenue, often based on historical data, market analysis, and expected market trends.