Question

Recently, the Transport Association of Zambia increased the price of bus fares for all long routes in Zambia. Specifically, the price of tickets between Lusaka and Livingstone increased from 200 Kwacha to 250 kwacha. The demand equation Q_d = 2000 - 5P is representative of the demand for bus tickets between Lusaka and Livingstone.
(i) Calculate the old price quantity demanded level

Answer 1

Given

Old price 200

$We=2000-5p$

Then

$Q=2000-5(200)\\=2000-1000\\=1000$