Question

With the help of demand function : `Q_(d) = 40 -5p`, answer the following questions :
(i) Calculate demand at price of Rs. 2 ,
(ii) Calcualte price, when demand will be 0 ,
(iii) Calculate demand, when price will be 0.

Answer 1

(i) `Q_(d) =40-5p`. Putting the value of price (i.e. Rs. 2), We get : `Q_(d) = 40 - 5xx 2 = 30` units
(ii) Putting the value of demand (0), we get , `0= 40 - 5p`. It means, p = Rs. 8. At price of Rs. 8, demand will be zero
(iii) Putting the value of price (0), we get :
`Q_(d) = 40 - 5 xx 0 = 40` units. At demand of 40 units, price will be zero.