Consider the demand function Qd = 150 - 2P.The effects of other determinants of Qd is reflected in
A) the intercept of the function.
B) the slope of the function.
C) neither the slope nor the intercept of the function.
D) in both the slope and the intercept of the function.

Question

Quizplus · Accepted Answer

The intercept of the demand function (in this case, 150) reflects the quantity demanded when the price is zero, which can be influenced by factors other than price, such as consumer preferences, income levels, and prices of related goods. These are other determinants of demand. The slope (-2) represents the rate at which quantity demanded changes with a change in price, specifically focusing on the price-quantity relationship, not the effects of other determinants.

Consider the Demand Function Qd = 150 - 2P