Identify the equation of a linear demand curve, where a is the vertical intercept, -b is the slope of the demand curve and p is the price of the product.

d(p) = a - bp d(p) = a + bp d(p) = -a - bp d(p) = -a + bp

d(p) = a - bp

The correct answer is Option 1: d(p) = a - bp. where a is the vertical intercept, –b is the slope of the demand curve. At price 0, the demand is a, and at price equal to a/b , the demand is 0. The slope of the demand curve measures the rate at which demand changes with respect to its price. For a unit increase in the price of the good, the demand falls by b units. The following figure depicts a linear demand curve.