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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
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3 partsStep-by-step solution
6 stepsHere are the calculations for the quantity demanded:
Part a(i)· 2 steps
When
To find the quantity demanded, substitute the given prices into the demand function .
Substitute into the demand function.
Calculate the quantity demanded.
The quantity demanded is .
Part a(ii)
When
Substitute into the demand function.
Calculate the quantity demanded.
A negative quantity demanded means that at this price, there is no demand for the product. The quantity demanded is (as quantity cannot be negative in economic terms, it implies demand ceases at or before this price).
Part a(iii)
When
Substitute into the demand function.
Calculate the quantity demanded.
The quantity demanded is .
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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