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1999 WAEC Economics Theory Given the demand function for commodity X Qd = 12 - 2P where Qd is...

Economics
WAEC 1999

Given the demand function for commodity X Qd = 12 - 2P where Qd is the quantity demanded and P the price of the commodity.

P 6 5 4 3 2 1 0
Qd              

Use the demand function to complete the table 
(b) Draw the individual's demand curve (use of graph paper is essential
(c) What is the maximum quantity the individual can buy of commodity X per unit of time?
(d) What is the relationship between quantity demanded and price in the function Qd = f(P)? 

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Explanation

With demand function Qd = 12 - 2p the table is  completed as follows: 
(a) 

P 6 5 4 3 2 1 0
Qd 0 2 4 6 8 10 12

 Qd = 12 - 2p
 when p = 6
 Qd = 12 - (2 x 6)
= 12 - 12 = 0 

 Qd = 12 - 2p
 when p = 5
 Qd = 12 - (2 x 5)
= 12 - 10 = 2

 Qd = 12 - 2p
 when p = 4
 Qd = 12 - (2 x 4)
= 12 - 8 = 4

 Qd = 12 - 2p
 when p = 3
 Qd = 12 - (2 x 3)
= 12 - 6 = 6

 Qd = 12 - 2p
 when p = 2
 Qd = 12 - (2 x 2)
= 12 - 4 =   8

Qd= 12 - 2p
when p = 1 
Qd = 12 - (2 x 1)
= 12 - 2 = 10

 (b) The individual's demand curve

(c) 12

(d) Inverse, i.e., the higher the price, the lower the quantity demanded Or the lower the price the higher the quantity demanded. 
 


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995