Referring to the diagram above, which of the following is a true statement? Prices Q1 Q2 SRAS AD1 AD2 Output

Suppose the price of a BMW rises. The substitution effect means BMWs are now relatively BMWS. expensive than they were before in relation to other cars, and consumers will buy

Using the midpoint method, if the price of an airline ticket from San Diego to Kansas City changes from $274 to $670, what is the percentage change in price? The price of an airline ticket from San Diego to Kansas City changes by percent. [Enter your answer in percent, rounded to two decimals.)

The following table shows worldwide sales of a certain type of cell phone and their average selling prices in 2012 and 2013. Year 2012 2013 Selling Price ($) Sales (millions) 928 1,144 375 335 (a) Use the data to obtain a linear demand function for this type of cell phone. (Let p be the price, and let q be the demand). q(p): -5.4p + 3185 X Use your demand equation to predict sales if the price is lowered to $255. 1808 x million phones (b) Fill in the blank. For every $1 increase in price, sales of this type of cell phone decrease by 5.4 million units.