To derive: the
Answer to Problem 1PA
The demand equation for the given demand curve is:
Explanation of Solution
Demand refers to the consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service.
Assuming all the other factors constant, an increase in the price of the commodity decreases the quantity demanded of a commodity and vice versa.
General demand equation is as follows:
Here,
Q= Quantity.
m= slope.
p= price.
a= quantity intercept (constant)
Calculation of the slope is as follows:
Calculation of Quantity intercepts is as follows:
Demand Equation is as follows:
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