Figure 5-4
-Refer to Figure 5-4.Assume,for the good in question,two specific points on the demand curve are (Q = 1,000,P = $40)and (Q = 1,500,P = $30).Then which of the following scenarios is possible?
A)Both of these points lie on the section of the demand curve from B to C.
B)The vertical intercept of the demand curve is the point (Q = 0,P = $60).
C)The horizontal intercept of the demand curve is the point (Q = 1,800,P = $0).
D)Any of these scenarios is possible.

Question

Figure 5-4 
-Refer to Figure 5-4.Assume,for the good in question,two specific points on the demand curve are (Q = 1,000,P = $40)and (Q = 1,500,P = $30).Then which of the following scenarios is possible?
A)Both of these points lie on the section of the demand curve from B to C. 
B)The vertical intercept of the demand curve is the point (Q = 0,P = $60). 
C)The horizontal intercept of the demand curve is the point (Q = 1,800,P = $0). 
D)Any of these scenarios is possible.

Quizplus · Accepted Answer

The vertical intercept can be calculated using the slope of the demand curve derived from the given points. The slope is -1/50, and using the point (Q = 1,000, P = $40), the intercept is calculated as $60.

Figure 5-4 -Refer to Figure 5-4.Assume,for the Good in Question,two Specific Points