Q = 40 – 2P Suppose that the p inthis equation refers to the price of a magazine

Question

Q = 40 – 2P

Suppose that the p inthis equation refers to the price of a magazine subscription, andthe q refers to the number of magazines to which Juliesubscribes. Read the following statement carefully: “the more magazines Julie subscribes to, the less she is willing topay for an additional magazine”

Which of the followingbest summarizes the pattern of casualty suggested by thisstatement?

- The relationshipbetween P and Q is not a casual relationship.

- A change in Qcauses a change in P.

- A change in Pcauses a change in Q.

Explanation / Answer

Remeber, Julie is one person, her not subscribing to amagazine does not change the price of the magazine, so the answeris: - A change in P causes a change in Q the price of the magazine change Julie's appetite formagazine, more expensive, she buys less and vice versa

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