Question

Suppose that the relationship between price, P, and quantity, Q, is given by the equation Q = 60 - 4P. 

Which of the following equations correctly represents solving Q = 60 - 4P for P? 

• P=15-1/4 Q

• P-60-Q

• P=60-4Q

• P=60+Q

• P=15-4Q

Plot the relationship between Pand Q on the following graph. 

Note: Price (P) is on the vertical axis and quantity (Q) s on the horizontal axis. 

The slope of this line is _______ .

Suppose that the Pin this equation refers to the price of a magazine subscription, and the Qrefers to the number of magazine subscriptions sold. Read the following statement carefully: "When the price of a magazine subsorption goes up, fewer people subsoribe to the magazine." 

Which of the following best summarizes the pattern of causality suggested by this statement? 

• A change in Q causes a charge in P. 

• The relationship between P and Q is not a causal relationship.

• A change in P causes a change in Q 

Answer 1

P- 15-40 in torret oph'on Becaus e Q = 60- yf S 4P = 60 -Q 60-Q P= 15 negabive Price cot-sia) Demand cusve ( down asand slofing) eupling) (60.0) Guanhiy - 25 II the slope of ho line s # opken S A change in P Caunes a change in Q in LAvret ophon Hal louser prce owanded says will lead h inucese in he f Quouhly Demauols Because of Laws of

Answer 2

Answer:

Q = 60 - 4P

4P = 60 - Q

P = 60/4 - Q/4

P = 15 - Q/4

Thus 4th option is right P = 15 - 1/4 Q