Question

The demand function of a product X is given as: Dx = 12 − 2 Px, where Px stands for price. The demand at price of ₹ 2 will be ______.

Options

• 6

• 8

• 5

• 10

Answer 1

The demand function of a product X is given as: Dx = 12 − 2 Px, where Px stands for price. The demand at price of ₹ 2 will be 8.

Explanation:

Substitute the price into the demand function: $$D_x=12-2P_x=12-2(2)=8\text{ units}.$$ The other options do not result from this calculation.