Answer to Question #250466 in Microeconomics for Maina2012

Question

a firm has demand function p=30-2q
(i) plot the graph of the function for q= 1, 2, 3 and 4
(ii) what type of demand does the graph represent
(iii) state two factors that may bring change in q

Answer 1

• i.

We will find the values of P when q = 1, 2, 3 and 4 and then graph the demand curve using excel. 

• ii

The graph represents a linear demand curve as it is a straight line. 

• iii.

1. A change in the income of consumers.
2. A change in the price of related products.