Suppose that the demand curve for bacon is described by the

Suppose that the demand curve for bacon is described by the equation P - 51.75 - 125Q^4, where P is the price and 0^d is the quantity demanded. if the price of bacon is $4, what is the quantity demanded Round your answers to nearest whole number If the price then drops to $2, what is Q^d now

Solution

P = 51.75 – 1.25Qd

When Price = $4.

4 = 51.75 – 1.25d

4 – 51.75 = -1.25Q

Q = 47.75 / 1.25 = 38.2 or 38.

When Price = $2

2 = 51.75 – 1.25Q

2 – 51.75 = - 1.25Q

Q = 49.75 / 1.25 = 39.8 or 40.

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