To calculate the quantity demanded based on the Law of Demand:
\[ QD = a - (b \cdot P) \]
Where:
The Law of Demand is an economic principle that describes the inverse relationship between the price of a good or service and the quantity demanded by consumers. It states that as the price of a good or service increases, consumer demand for it decreases, and vice versa, assuming all other factors remain constant. This law illustrates the consumer behavior of purchasing less of a product when its price rises, and more when its price falls.
Let's assume the following values:
Step 1: Calculate the quantity demanded:
\[ QD = 100 - (2 \cdot 10) = 100 - 20 = 80 \text{ units} \]
So, the quantity demanded is 80 units.
