A linear demand curve passes through the points (price 8, quantity 90) and (price 14, quantity 60). What quantity is demanded at a price of 23?
Answer and explanation
Correct answer: D. 15
- Step 1: Slope = (60 - 90)/(14 - 8) = -5. Step 2. Quantity at price 23 = 90 + -5 x (23 - 8) = 15. Answer: 15. Why not the others: 51: That assumes quantity falls by one unit for each unit rise in price. 55: That moves along the line by one unit of price only. 75: That is the average of the two quantities.
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