Exhibit 4-1
The following are the equations for the supply and demand curves in the market for weezils:
Demand:
$ Q_{d}=20-2 P $
Supply:
$ Q_{s}=5+3 P $
where $ Q_{d} $ is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars.
-Refer to Exhibit 4-1.If consumers decide that they want 20 percent fewer weezils at every price, the equation for the new demand curve for weezils will be
A) $\mathrm { Q } _ { \mathrm { d } }$ = 20 - 1.6P.
B) $\mathrm { Q } _ { \mathrm { d } }$ = 0.2(20 - 2P).
C) $\mathrm { Q } _ { \mathrm { d } }$ = 0.8(20 - 2P).
D) $\mathrm { Q } _ { \mathrm { d } }$ = 80(20 - 2P).

Question

Exhibit 4-1
The following are the equations for the supply and demand curves in the market for weezils:
 Demand:
$ Q_{d}=20-2 P $
Supply:
$ Q_{s}=5+3 P $
where $ Q_{d} $ is the quantity demanded, Qs is the quantity supplied, and P is the price per weezil in dollars.
-Refer to Exhibit 4-1.If consumers decide that they want 20 percent fewer weezils at every price, the equation for the new demand curve for weezils will be
A) $\mathrm { Q } _ { \mathrm { d } }$ = 20 - 1.6P.
B) $\mathrm { Q } _ { \mathrm { d } }$ = 0.2(20 - 2P).
C) $\mathrm { Q } _ { \mathrm { d } }$ = 0.8(20 - 2P).
D) $\mathrm { Q } _ { \mathrm { d } }$ = 80(20 - 2P).

Quizplus · Accepted Answer

If consumers decide that they want 20% fewer weezils at every price, then the new quantity demanded would be 0.8 times the original quantity demanded (100% - 20% = 80%). So, the new equation for the demand curve would be:

$\mathrm { Q } _ { \mathrm { d } }=0.8(20-2P)$

Simplifying:

$\mathrm { Q } _ { \mathrm { d } }=16-1.6P$

Which is equivalent to choice C.

Exhibit 4-1 the Following Are the Equations for the Supply Qd=20−2P Q_{d}=20-2 P Qd​=20−2P

Exhibit 4-1
the Following Are the Equations for the Supply $Q_{d}=20-2 P$