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Hello.
00:02
This problem is about a demand function, a demand function in which q is a function of the price speed.
00:18
We are given that q equals 5 ,500 minus 100p and what the question is to interpret, what do these two coefficients mean? right, now what is the demand function? a demand function is a relation connecting the quantity.
00:45
This is the quantity, quantity demanded by the consumers, demanded by the consumers, when the price is p dollars per unit.
01:20
Consumers are prepared to buy when the price is p dollars per unit obviously when the price changes the actual quantity will change as well that is why this is a function q is a function of p q is a function of p now if we have a look at the form of the function let's compare it to a function where y is a function of x and it has this form okay this is a linear function the number the coefficient next to the x is the slope.
01:57
Slope is calculated by difference in y divided by difference in x.
02:06
Now, if we make this difference in x, if we make it 1, then what the slope will give us is the change in y when x changes by plus 1.
02:26
Okay, and look back at b.
02:29
This is called the y intercept.
02:31
So when x equals 0, y equals b.
02:40
And to finish off with the slope, the unit of slope, the unit of slope is slope of y, pardon me, the unit of y, the unit of y, per.
03:02
Now we can say additional unit of x.
03:18
This is when we have y as a function of x and it's a linear function...