The following are the equations for the supply and demand curves in the market for weezils: where Qd 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)Qd = 20 − 1.6P.
B)Qd = 0.2(20 − 2
P).
C)Qd = 0.8(20 − 2
P).
D)Qd = 80(20 − 2

Question

The following are the equations for the supply and demand curves in the market for weezils:   where Qd 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)Qd = 20 − 1.6P. 
B)Qd = 0.2(20 − 2
P). 
C)Qd = 0.8(20 − 2
P). 
D)Qd = 80(20 − 2

Quizplus · Accepted Answer

To find the new demand curve after a 20% decrease in quantity demanded at every price, we can use the formula Qd = 0.8(Qd from original equation). Therefore, the new demand curve equation becomes:
Qd = 0.8(20 – 2P) which simplifies to Qd = 16 – 1.6P. The closest option to this equation is Choice C.

The Following Are the Equations for the Supply and Demand