Answer to Question #158260 in Microeconomics for Syed SHOAIB

Question

Enunciate theoretical as well as diagramatical equation of demand, differntiate between quantity demand and quantity demanded

Answer 1

The demand curve shows the amount of goods consumers are willing to buy at each market price.

A linear demand curve can be plotted using the following equation.

$$Q_d = a – b(P)$$

Q = quantity demand

a = all factors affecting price other than price

b = slope of the demand curve

P = Price of the good.

Quantity Demanded represents an exact quantity (how much) of a good or service is demanded by consumers at a particular price. Demand refers to the graphing of all the quantities that can be purchased at different prices. On the contrary, quantity demanded, is the actual amount of goods desired at a certain price.