Question

In the equation, Dx = a - bPx,
(a) a is the quantity of X demanded when price is zero
(b) b is the quantity of X demanded when price is zero
(C) a is the slope of the demand curve
(d) bis the elasticity of demand
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Answer 1

Answer:

a is the quantity of X demanded when price is zero

Answer 2

Explanation:

Dx = a - bPx is the given demand function.

• When the price of X is zero, a is the amount required.
• When the price is zero, b is the amount of X requested.
• The demand curve's slope is b.
• The demand function depicts the relationship between the amount requested for a commodity (dependent variable) and the price of the item (independent variable).