Multiple Choice
At a price of per gallon, the average weekly demand by consumers for gasoline is 45 gallons. If the price rises to , the weekly demand drops to 41 gallons. Assuming demand is linear, let , where is the weekly quantity of gasoline demanded and is the price per gallon. What is the economic interpretation of the -intercept?
A) The the price at which no gasoline will be demanded.
B) The number of gallons demanded if gas were free.
C) The amount the demand decreases if the price rises .
D) The amount the price decreases if the demand is increased by 1 gallon.
Correct Answer:

Verified
Correct Answer:
Verified
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