What is the choke price for an individual whose demand equation is given by Q=200-4P?

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Study for the University of Central Florida ECO2023 Principles of Microeconomics Final. Prepare with multiple choice questions, flashcards with helpful hints and explanations. Ace your exam!

The choke price refers to the price at which the quantity demanded for a product is zero. To find the choke price using the given demand equation ( Q = 200 - 4P ), we can set the quantity demanded ( Q ) to zero and solve for the price ( P ).

Setting ( Q = 0 ):

[ 0 = 200 - 4P ]

Rearranging the equation to solve for ( P ) gives:

[ 4P = 200 ] [ P = \frac{200}{4} = 50 ]

Thus, the choke price is $50. This means that when the price of the product is $50 or higher, the consumer will demand nothing, indicating the point where the demand curve intersects the price axis. Therefore, the correct answer is $50.