The demand function of a product is as follows: – qa = 200.5 – 3.5Pa + 2.5I and, Pa = $ 50 and I = $ 1000 (i) Compute the demand when P = $ 60 and ‘I’ is constant. (ii) Compute the demand with P = $ 50 and I = $ 1500. (iii) Explain this phenomenon by the help of a diagram by the method of change in demand and shift in demand.

/in /by

The demand function of a product is as follows: –

qa = 200.5 – 3.5Pa + 2.5I

and, Pa = $ 50 and I = $ 1000

(i) Compute the demand when P = $ 60 and ‘I’ is constant.

(ii) Compute the demand with P = $ 50 and I = $ 1500.

(iii) Explain this phenomenon by the help of a diagram by the method
of change in demand and shift in demand.

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