Suppose a statistical study finds that the demand for brand x automobile tires is q = 800 minus5p, where q is the number of brand x tires sold per year (in thousands of tires), and p is the price per tire. how confident would you be that this is an accurate equation for brand x tire demand?
a. not very confident because other factors affecting the sales of tires have been left out of the equation.
b. very confident because the negative sign in front of price (p) means the demand curve has a negative slope, as it should.
c. very confident because statistical studies are very accurate.
d. not very confident because methods other than statistical studies are better at estimating demand equations.