Given that quantity demanded per-period of time is a function of price and that the relationship is expressed as Q=60-1/2P Where Q=quantity demanded, P=price. (a)find the quantity demanded when the price is (i)N30.00 (ii)N0.00 (b)Comment in (a) (ii)above (c)Suppose the relationship is expressed as P=N (180-3Q find P when Q=60?

Tifepraise

3 years ago

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Marvelous_1

3 years ago

Explanation
(a)Q=60-1/3P

(i) When price is N30, Q = 60 - 13 (30)
= 60 - 10 , Q = 50

(ii) When price is N210, Q = 60 - 13(210)
= 60 - 70 = - 10

(iii) When price is N0, Q = 60 -13(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.