Let a linear demand function be expressed as q a bp where


Let a linear demand function be expressed as Q = a + bP, where b < 0.

a. Express the point elasticity of demand as a function of Q and a only.

b. Take the dericated dE/dQ adn verify that demand becomes less elastic moving down the demand curve.

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Econometrics: Let a linear demand function be expressed as q a bp where
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