Demand

Demand depicts the quantity of products the consumer purchases for different prices.

Example

The demand for cookies follows the equation: `Q_d = 10 - P`.

If price is $3, the quantity demanded is `Q_d = 10 - 3 = 7` cookies.

Question

The demand for cookies follows the equation: `Q_d = 653 - 45 \times P`.

If cookies were sold on the market for $14, what is the quantity demanded?

Plug the price $14 into the demand function: $$Q_d = 653 - 45 \times P = 653 - 45 \times 14 = 23$$