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Answer to Question #234147 in Microeconomics for chisenga
Question #234147
Recently, the Transport Association of Zambia increased the price of bus fares for all long routes in Zambia. Specifically, the price of tickets between Lusaka and Livingstone increased from 200 Kwacha to 250 kwacha. The demand equation Q_d = 2000 - 5P is representative of the demand for bus tickets between Lusaka and Livingstone.
(i)Calculate the new price quantity demanded level
(i)Calculate the new price quantity demanded level
Expert's answer
Given
new price 250
"Qs=2000-5p"
Then
"Q=2000-5(250)\\\\=2000-1250\\\\=750"
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