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So I've got this assignment, and I don't know whether I'm right or wrong. It's a micro-economy.

"At price $28,50 Q(D) of a product is 88464 units. Find an estimated linear demand relationship, when you know that the price elasticity of D is -1,75."

Q=a-bP <=>

Finding the slope, b

-1,75=(28,50/88464)*(change in quantity/change in price)

(change in quantity/change inprice)=-1,75*(88464/28,5)=-5432=b

Fidning a:
88464=a-(5432*28,50) <=>
243.279=a

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Ritu Kharb
Ritu KharbLv5
28 Sep 2019

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