Solved: Equation of the new demand curve for chevrolets, Microeconomics

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Equation of the new demand curve for chevrolets

Demand Analysis:

Qc = 100,000 - 100 Pc + 2,000N + 50I + 30Pf - 1,000 Pg + 3A + 40,000P1

Where,

Q_c = quantity demanded per year of Chevrolet automobiles
P_c = Price of Chev. automobiles in dollars
N = population of the USA in millions
I = per capita disposible income in dollars
P_f = price of Ford automobiles in dollars
P_g = real price of gasoline in cents per gallon
A = advertising expenditures by Chev. in dollars per year
P₁ = credit incentives to purchase Chevrolets, in percentage points below the rate of interest on borrowing in the absence of incentives

Assume that the average volume of the independent variables are N = 225 million, I = $12,000, Pf = $10,000, P_g = 100 cents, A= $250,000, and P₁= 0, incentives are phased out.

Q1. Find the equation of the new demand curve for Chevrolets?

Q2. If P_c = $10,000, find the value of Q_c?

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Q : Equation of the new demand curve for chevrolets

Assume that the average volume of the independent variables are N = 225 million, I = $12,000, Pf = $10,000, Pg = 100 cents, A= $250,000, and P1= 0, incentives are phased out. Q1. Find the equation of the new demand curve for Chevrolets?

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Solution Preview :

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Microeconomics: Equation of the new demand curve for chevrolets

Reference No:- TGS01616817

Have a Question? (oR Write a Review)

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Reference No:- TGS01616817

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