ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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16
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14
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22
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18
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Detailed explanation-1: -You use the demand formula, Qd = x + yP, to find the demand line algebraically or on a graph. In this equation, Qd represents the number of demanded hats, x represents the quantity and P represents the price of hats in dollars.
Detailed explanation-2: -Plug your numbers into the supply and demand equations: Qs = x + yP. Qd = x-yP.
Detailed explanation-3: -If the demand curve is linear, then it has the form: p = a-b*q, where p is the price of the good and q is the quantity demanded. The intercept of the curve and the vertical axis is represented by a, meaning the price when no quantity demanded. and b is the slope of the demand function.
Detailed explanation-4: -The price elasticity of demand (which is often shortened to demand elasticity) is defined to be the percentage change in quantity demanded, q, divided by the percentage change in price, p. The formula for the demand elasticity (ǫ) is: ǫ = p q dq dp .