The demand function for a commodity is given as Qd = 21 – 3p.
(a) Use the demand function to complete the table below. [6 marks]
| Price $ | 0 | 1 | 3 | 4 | 5 | 6 |
| Quantity demanded (Kg) |
(b) Draw the demand curve for the completed schedule in 1(a) (Use of graph sheet is essential) [8 marks]
(c) Outline any three factors affecting demand [6 marks]
Explanation
(a) 21 - (3 x 0) = 21 - 0 = 21
21 - (3 x 1) = 21 - 3 = 18
21 - (3 x 3) = 21 - 9 = 12
21 - (3 x 4) = 21 - 12 = 9
21 - (3 x 5) = 21 - 15 = 6
21 - (3 x 6) = 21 - 18 = 3
| Price $ | 0 | 1 | 3 | 4 | 5 | 6 |
| Quantity demanded (Kg) | 21 | 18 | 12 | 9 | 6 | 3 |
(b)
(c) (i) Price of the commodity.
(ii) Income of consumers.
(iii) Price of other commodities
(iv) Taxation
(v) Population
(vi) Tastes and fashion
(vii) Weather
(viii) Expectation of future rise in prices
(ix) Government policy
(x) Advertisement.