An individual consumer's weekly demand function for sugar is expressed as Q_d = 120 - 4P, … — JAMB UTME

An individual consumer's weekly demand function for sugar is expressed as $Q_d = 120 - 4P$ , where $Q_d$ represents the quantity demanded in bags and $P$ represents the price per bag in Naira ( $\text{₦}$ ). According to the law of demand, by how many bags does the quantity demanded decrease when the price per bag increases from $\text{₦}10$ to $\text{₦}15$ ?

Cevap: 20 bags

Cevap

The quantity demanded decreases by 20 bags.

According to the law of demand, an increase in price leads to a decrease in quantity demanded, ceteris paribus. Substituting

P = 10

into the demand equation yields

Q_d = 120 - 4(10) = 80

bags. Substituting

P = 15

yields

Q_d = 120 - 4(15) = 60

bags. The difference between the initial and new quantity demanded is

80 - 60 = 20

bags.

Adım Adım Çözüm

Calculate initial quantity demanded (

Q_1

) at price

P = 10

Q_1 = 120 - 4(10) = 80

bags

Substitute the initial price of

\text{₦}10

into the given demand function

Q_d = 120 - 4P

Calculate new quantity demanded (

Q_2

) at price

P = 15

Q_2 = 120 - 4(15) = 60

bags

Substitute the higher price of

\text{₦}15

into the demand function to reflect movement along the demand curve as price increases.

Determine the magnitude of the decrease in quantity demanded

Decrease =

80 - 60 = 20

bags

Subtract the new quantity demanded from the initial quantity demanded to measure the change resulting from the price change.

Anahtar Kavram

Law of Demand and Demand Function Evaluation

Tahmini Süre:1m 30s

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