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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
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 , the calculated quantity demanded is 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 or higher, the quantity demanded is effectively zero. The demand function implies that demand ceases when , which means , or . So, for any price , the quantity demanded will be 0.
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