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The given equation is: Q = −4000 + 2000Px This is a linear demand function where: * Q = Quantity demanded * Px = Price of good X * The slope and intercept indicate how quantity demanded responds to changes in the price of good X. Interpretation of the Equation: 1. Intercept (−4000): The equation suggests that at a zero price (Px = 0), the quantity demanded would be −4000. Though negative quantity does not make sense in real life, this simply indicates that the linear demand curve intersects the quantity axis below zero — a theoretical aspect indicating that demand becomes _____ ___ ____ _________ _____ ___ __________.
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