Questions
ECON_104B_001_25S Lecture Quiz #4
Single choice
What is the equation for the social demand curve to the for values of Q that are less than the value where the kink occurs?
Options
A.P=200-Q
B.P=100-Q
C.P=300-Q
D.P=300-2Q
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Step-by-Step Analysis
To tackle the question, we first restate the setup and the options to keep the context clear.
Option A: P=200-Q. This form represents a linear relationship with slope -1 and intercept 200. If the kink occurs at a Q value that changes the slope, this option would only be correct if the social demand curve had a slope of -1 in the region below the kink, which would place the intercept accordingly. Without that intercept being 300, this option seems to describe a different segment than the one specified for Q below the kink.
Option B: P=10......Login to view full explanationLog in for full answers
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