Final answer:
The choke price is the price at which the quantity demanded of a good falls to zero; for the demand function Q = 400 - 2P, the choke price is $200.
Step-by-step explanation:
If an individual's demand function for a good is given by the linear equation Q = 400 - 2P, the "choke price" is the price at which the quantity demanded falls to zero. To find this, set Q to zero and solve for P:
0 = 400 - 2P
2P = 400
P = 200
Therefore, the choke price is $200.
In economics, the choke price is a concept that describes the price at which consumers will cease purchasing a product, indicating the upper boundary of a demand curve. Using graphs or algebra are both valid methods of solving models to find this and other points of interest on the demand curve.