If the demand curve is linear, then it has the form: p = a - b*q, where p is the price of the good and q is the quantity demanded. The intercept of the curve and the vertical axis is represented by a, meaning the price when no quantity demanded. and b is the slope of the demand function.

What is linear demand function?

Demand might be represented by a linear demand function such as. Q(d) = a - bP. Q(d) represents the demand for a good. P represents the price of that good. Economists might consider how sensitive demand is to a change in price.

What is the slope of linear demand curve?

Since slope is defined as the change in the variable on the y-axis divided by the change in the variable on the x-axis, the slope of the demand curve equals the change in price divided by the change in quantity. To calculate the slope of a demand curve, take two points on the curve.