A demand curve of the form: Q = a - bP, where a and b are positive real numbers,:
A) is an upward sloping straight line.
B) has a constant price elasticity of demand.
C) is a downward sloping straight line.
D) is a parabolic curve.

Question

Quizplus · Accepted Answer

A demand curve of the form Q = a - bP is a linear equation with a negative slope, meaning that as the price increases, the quantity demanded decreases. This is the definition of a downward sloping demand curve.

A Demand Curve of the Form: Q = a -