Assume that the equation for demand for bread at a small bakery is Q^d = 60 - 10P_b + 3Y, where Q^d is the quantity of bread demanded in loaves and Y is the average income in the town in thousands of dollars.
a. If the average income in the town is 10, state the equation for Q^d in terms of P_b.
b. Draw a graph of the demand curve with Q^d on the horizontal axis and P_b on the vertical axis.Label the curve DD.

Question

Quizplus · Accepted Answer

The Answer of Assume that the equation for demand for bread at a small bakery is Q^d = 60 - 10P_b + 3Y, where Q^d is the quantity of bread demanded in loaves and Y is the average income in the town in thousands of dollars. a. If the average income in the town is 10, state the equation for Q^d in terms of P_b. b. Draw a graph of the demand curve with Q^d on the horizontal axis and P_b on the vertical axis.Label the curve DD.

Assume That the Equation for Demand for Bread at a Small