Question 7
Theory of DemandIf the demand function is Qd = −0.5p + 20, calculate the quantity demanded when price is $15.00.
- A.−$27.50
- B.−$12.50
- C.$12.50
- D.$27.50
Show the answer and explanation
Answer: C ($12.50)
Explanation
Qd = −0.5 × 15 + 20 = −7.5 + 20 = 12.50.