For the demand equation, where x represents the quantity demanded in units of 1,000 and p is the unit price in dollars, determine the quantity demanded corresponding to the unit price p = 5. 5x + 4p - 40 = 0
A) 3,000
B) 4,500
C) 4,000
D) 5,500

Question

Quizplus · Accepted Answer

To find the quantity demanded at a unit price of $5 (p = 5), we need to solve for x in the equation:

5x + 4(5) - 40 = 0

Simplifying, we get:

5x + 20 - 40 = 0

5x = 20

x = 4

However, the problem states that x represents the quantity demanded in units of 1,000. Therefore, we need to multiply x by 1,000 to get the actual quantity demanded:

x = 4 * 1,000 = 4,000

So the quantity demanded at a unit price of $5 is 4,000 units. Therefore, the best choice is C.

For the Demand Equation, Where X Represents the Quantity Demanded