Question

Qd = 32,000 – 16P.

P = 32,000 – Qd = 32,000 – 24,000 = $500
Give an interpretation of this demand price.

Answer 1

The demand price of $500 means that at that price, the quantity demanded for the product is 24,000 units. In other words, if the price is set at $500, consumers are willing to buy 24,000 units of the product. This information is derived from the given demand function Qd = 32,000 – 16P, where Qd represents the quantity demanded and P represents the price.