Economics Homework Help

pleas answer all questions carefully.

1) List two challenges that estimating demand using data involves.

2) Suppose the average price of passenger cars sold by a GM car dealer is $40,000: at this price, the dealer sells 2000 passenger cars every year. Assume that the demand curve, for passenger cars, is linear. If the estimated slope of the dealer’s demand curve is -1, what would be your educated guess of the number of passenger cars this dealer can sell if the average price is lowered by $1,000?