The y- axis intercept of the demand curve is 60 and the slope is - 8.The equation of the demand curve is A)P = 8 - 60Q_D. B)P = 60 - 8Q_D. C)Q_D = 60 - 8P. D)P = 60 + 8Q_D. E)Q_D = 60 + 8P.

Question

Quizplus · Accepted Answer

The general equation of a linear demand curve is P = a - bQ (where P is price, Q is quantity, a is the y-intercept, and b is the slope). Substituting the given values, we get P = 60 - 8Q. Solving for Q, we get Q = (60-P)/8, which is the demand function. Therefore, the correct equation of the demand curve is P = 60 - 8Q or P = 60 - 8(Q_D), which is given in option B.

The Y- Axis Intercept of the Demand Curve Is 60