How many vanity plates would be purchased

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Draw a Demand Curve. Your state has decided to offer its citizens vanity license plates for their cars and wants to predict how many vanity plates it will sell at different prices. The price of the state's regular license plates is $20 per year, and the state's per-capita income is $30,000. A recent survey of other states with approximately the same population (3 million people) generated the following data on incomes, prices, and vanity plates:

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a. Use the available data to identify some points on the demand curve for vanity plates and connect the points to draw a demand curve. Don't forget ceteris paribus.

b. Suppose the demand curve is linear. If your state sets a price of $50, how many vanity plates would be purchased?

Reference no: EM131124995

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