The equation for the demand curve for bags of Doritos is P = 6 + (-1) × Q. Which graph shows the CORRECT demand curve?

Question

Quizplus · Accepted Answer

The demand curve equation shows an inverse relationship between price (P) and quantity demanded (Q), meaning as the price increases, the quantity demanded decreases. In the given equation, the intercept (where Q = 0) is 6, indicating a minimum price of $6. The coefficient of Q is negative (-1), indicating that as the quantity demanded increases, the price decreases but at a diminishing rate.

Option A shows a positive slope, which is incorrect based on the equation. Option C shows a vertical line, indicating that the price is constant regardless of the quantity demanded, which is also incorrect. Option B shows a downward-sloping line, which represents the correct relationship between price and quantity demanded. Hence, B is the correct choice.

The Equation for the Demand Curve for Bags of Doritos