The linear demand curve is represented by the equation A) P=Q-aP B) Q=a-bP C) Q=a-bP² D) Q = AP^-b

Question

Quizplus · Accepted Answer

The linear demand curve is represented by the equation Q=a-bP, where Q is the quantity demanded, P is the price, a is the intercept on the quantity axis, and b is the slope of the demand curve. Option B is the only equation that matches this format. Option A has a negative coefficient for the price variable, which is not consistent with a normal demand curve. Options C and D include additional variables that are not typically included in a linear demand equation.

The Linear Demand Curve Is Represented by the Equation