Suppose the demand for eggs is given by Qd=100 - 2P. What is the price if quantity demanded = 96

Suppose the demand for eggs is given by Qd=100 - 2P. What is the price if quantity demanded = 96

• A. $1.50
• B. $2.00
• C. $3.00
• D. $4.00

Answer: (B)

When you have a linear demand function, you solve for price by substituting the given quantity and solving for P. Set Qd equal to 96: 96 = 100 − 2P. Subtract 100 from both sides to get −4 = −2P, then divide by −2 to find P = 2. The price is $2.00. Quick check: with P = 2, Qd = 100 − 2(2) = 96, which matches. The other prices would yield different quantities (e.g., P = 1.50 gives Qd = 97; P = 3.00 gives Qd = 94; P = 4.00 gives Qd = 92), so they don’t fit.

When you have a linear demand function, you solve for price by substituting the given quantity and solving for P. Set Qd equal to 96: 96 = 100 − 2P. Subtract 100 from both sides to get −4 = −2P, then divide by −2 to find P = 2. The price is $2.00. Quick check: with P = 2, Qd = 100 − 2(2) = 96, which matches. The other prices would yield different quantities (e.g., P = 1.50 gives Qd = 97; P = 3.00 gives Qd = 94; P = 4.00 gives Qd = 92), so they don’t fit.