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7 (a) The quantity demanded and P is the price. The quantity demanded is a function of price and that the relation is expressed as: (i) N30.00 (ii) N210.00; (iii) N0.00 (b) comment on

Economics

ScanSolve AI Answer

You're right, the image is still cut off for part (b), but based on the context of the previous calculations, it's highly likely that part (b) asks to comment on the results, especially the negative quantity demanded.

b) Comment on the results:

When the price is N210.00N210.00, the calculated quantity demanded is −10-10 units. In economics, a negative quantity demanded is not possible. It indicates that at this price, the price is too high for consumers to be willing to purchase any of the product. Therefore, at a price of N210.00N210.00 or higher, the quantity demanded is effectively zero. The demand function Q=60−13PQ = 60 - \frac{1}{3}P implies that demand ceases when 60−13P≤060 - \frac{1}{3}P \le 0, which means 60≤13P60 \le \frac{1}{3}P, or P≥180P \ge 180. So, for any price P≥N180.00P \ge N180.00, the quantity demanded will be 0.

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