## Linear demand functions - example (HL Only)

Letīs Do Some Economics

Assume a linear demand function of the form:

**Qd = 100 - 8P**

Using this demand function, answer the following questions. Once you have had a go at the questions, follow the link below to compare your answers.

- Calculate the quantity demanded for prices from $0 - $10.
- Plot these figures to give the demand curve for the product.
- If the demand function changes to Qd = 100 - 10P, draw up a new table to show the change in quantity demanded for prices from $0 - $10.
- Plot the new demand curve.
- If the demand function now changes to Qd = 120 - 10P, draw up a new table to show the change in the values for quantity demanded for prices from $0 - $10.
- Plot this new demand curve.
- Explain two reasons for:
- the change in the demand function from Qd = 100 - 8P to Qd = 100 - 10P
- the change in the demand function from Qd = 100 - 10P to Qd = 120 - 10P