Given that quantity demanded per period of time is a function of price and that the relation is expressed as: Q = 60 - 1/3 P, where Q is quantity demanded and P is the price,
(a) Find the quantity demanded when price is :
(i) N30.00;
(ii) N210.00;
(iii) NO.00.
(b) comment on (a) (ii) above.
(c) suppose the relation is now expressed as P = N (180 - 3Q); find P when:
(i) Q = 0;
(ii) Q = 60;
(iii) Q = 59.
(a)Q=60-1/3P
(i) When price is N30, Q = 60 - \(\frac{1}{3}\) (30)
= 60 - 10 , Q = 50
(ii) When price is N210, Q = 60 - \(\frac{1}{3}\)(210)
= 60 - 70 = - 10
(iii) When price is N0, Q = 60 -\(\frac{1}{3}\)(0)
3 = 60 -0 = 60
(b) In (a) (ii) above, the law of demand comes into play here. The law of demand states that, " the higher the price, the lower the quantity demanded". The fact that the price is as high as N210, consumers are not willing to buy more.
(c)(i) P = N (180 - 3Q)
when Q= 0
p = N (180 - 3(0)
= N180 - 0
=N180
(ii) when Q = 60
p= N (180 - 3 (60)
= N (180 - 180) =N0
(iii) when Q = 59
P = N (180 - 3(59)
= N (180 - 177) = N3.
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