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Given that quantity demanded per period of time is a function of price and that the relation is expressed as: Q = 60 − 1/3 P, where Q is quantity demanded and P is the price, (a) Find the quantity demanded when price is (i) N30.00 (ii) N210.00; (iii) N0.00 (b) comment on

Economics

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Answers

3 parts
a(i)

50 units\text{50 units}

a(ii)

0 units\text{0 units}

a(iii)

60 units\text{60 units}

Step-by-step solution

6 steps

Here are the calculations for the quantity demanded:

Part a(i)· 2 steps

When P=N30.00P = N30.00

To find the quantity demanded, substitute the given prices into the demand function Q=60−13PQ = 60 - \frac{1}{3}P.

  1. Substitute P=30P = 30 into the demand function.

    Q=60−13(30)Q = 60 - \frac{1}{3}(30)
  2. Calculate the quantity demanded.

    Q=60−10Q = 60 - 10 Q=50Q = 50

    The quantity demanded is 50 units\boxed{\text{50 units}}.

Part a(ii)

0 units\text{0 units}

When P=N210.00P = N210.00

  1. Substitute P=210P = 210 into the demand function.

    Q=60−13(210)Q = 60 - \frac{1}{3}(210)
  2. Calculate the quantity demanded.

    Q=60−70Q = 60 - 70 Q=−10Q = -10

    A negative quantity demanded means that at this price, there is no demand for the product. The quantity demanded is 0 units\boxed{\text{0 units}} (as quantity cannot be negative in economic terms, it implies demand ceases at or before this price).

Part a(iii)

60 units\text{60 units}

When P=N0.00P = N0.00

  1. Substitute P=0P = 0 into the demand function.

    Q=60−13(0)Q = 60 - \frac{1}{3}(0)
  2. Calculate the quantity demanded.

    Q=60−0Q = 60 - 0 Q=60Q = 60

    The quantity demanded is 60 units\boxed{\text{60 units}}.

Part b

The question for part (b) is incomplete in the provided image. Please provide the full question for part (b) if you'd like me to answer it.

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