At a price of per gallon, the average weekly demand by consumers for gasoline is 45 gallons. If the price rises to , the weekly demand drops to 41 gallons. Assuming demand is linear, let , where is the weekly quantity of gasoline demanded and is the price per gallon. What is the economic interpretation of the -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 .
D) The amount the price decreases if the demand is increased by 1 gallon.
Correct Answer:
Verified
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents