DEMAND CONCEPTS ACTIVITY

1. Consider the Demand Schedule

PRICE (X) QUANTITY DEMANDED (Y)

0 500
5 475
10 450
15 425
20 400

a. Determine the equation of the Demand Using the algebraic approach

b. Plot the schedule on a demand graph
c. Determine the slope
d. Interpret the slope
e. Answer the following questions
e.1 What is the maximum quantity people would want for this product
e.2 If the price increases to 22, what would be the quantity demanded by consumers
e.3 If the quantity demanded at a particular time is only 360 units, what was the
expected price of the commodity during this time?
e.4 If the price is expected to increase by 3, what was expected impact to the quantity
demanded of the product
e.5 Suppose the quantity demanded decreased by 10 units, what was the
corresponding change in the price?