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At a Price Of $2.75\$ 2.75 Per Gallon, the Average Weekly Demand by Consumers for Gasoline

Question 114

Multiple Choice

At a price of $2.75\$ 2.75 per gallon, the average weekly demand by consumers for gasoline is 45 gallons. If the price rises to $2.85\$ 2.85 , the weekly demand drops to 41 gallons. Assuming demand is linear, let Q=b+mpQ=b+m p , where QQ is the weekly quantity of gasoline demanded and pp is the price per gallon. What is the economic interpretation of the pp -intercept?


A) The the price at which no gasoline will be demanded.
B) The number of gallons demanded if gas were free.
C) The amount the demand decreases if the price rises $1\$ 1 .
D) The amount the price decreases if the demand is increased by 1 gallon.

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