Question

Suppose a statistical study finds that the demand for Brand X automobile tires is Q​ = 800 minus−​5P, where Q is the number of Brand X tires sold per year​ (in thousands of​ tires), and P is the price per tire. How confident would you be that this is an accurate equation for Brand X tire​ demand?

Answer 1

Answer:

This is a correct equation for Brand X tire demand.

Explanation:

We can be sure that this is an accurate equation for demand by cheking if the slope is negative as the demand decrease when the price increase

Q= 800 - 5P

dQ/dP = -5

the slope is negative the quantity decreases as price increases so this is a demand equation.