Worked Examples · Example 2
Q.A demand schedule shows that when price is Rs. 10, quantity demanded is 20 units; when price falls to Rs. 8, quantity demanded rises to 30 units. Treating price (P) as the Y-axis variable and quantity (Q) as the X-axis variable, find the slope of this demand line.
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✓ Free question
Step 1 — Identify the two points, with P on the Y-axis and Q on the X-axis: and .
Step 2 — Apply the slope formula:
Step 3 — Independent check (dual-solve). Reversing the order of the two points must give the same slope: . ✓ Matches.
Step 4 — Interpret. The slope is negative, as expected for a demand line — price and quantity demanded move in opposite directions. Its size, 0.2, means price falls by Rs. 0.2 for every one-unit rise in quantity demanded (equivalently, quantity demanded rises by 5 units for every Rs. 1 fall in price, since ).
✓Final answer
Slope (negative, confirming the expected downward-sloping demand line).
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