4. a. Suppose the general demand function for cars is Qaf(P, M, P, P., N) such...

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4. a. Suppose the general demand function for cars is Qaf(P, M, P, P., N) such that M average income of $30,000; Ps $2.75 per gallon of gas; P, $20,000 expected future price; and N-700 consumers in the market. Suppose the general supply function is Q. P, P, P. T. P., F) such that P; of average wages is $15.15, P.- $35,000 the average cost of SUVs, T- 100 the average level of technology, and F21 is the average number of firms in the industry. Explain the meaning of the general demand function, the general supply function, and the next steps in solving this problem. b. The direct demand function is Qa=40000-3P and the direct supply function is Q.-25000 + 2P; solve the equation. Interpret the results. 4. a. Suppose the general demand function for cars is Qaf(P, M, P, P., N) such that M average income of $30,000; Ps $2.75 per gallon of gas; P, $20,000 expected future price; and N-700 consumers in the market. Suppose the general supply function is Q. P, P, P. T. P., F) such that P; of average wages is $15.15, P.- $35,000 the average cost of SUVs, T- 100 the average level of technology, and F21 is the average number of firms in the industry. Explain the meaning of the general demand function, the general supply function, and the next steps in solving this problem. b. The direct demand function is Qa=40000-3P and the direct supply function is Q.-25000 + 2P; solve the equation. Interpret the results.

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a The general demand function for cars denoted as QdP M Pg N represents the relationship between the quantity demanded of cars Qd and various factors ... View the full answer