=For positive values of a and b, this will give lower demand when the price is higher.
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=For positive values of a and
b, this will give lower demand when the price is higher. However, a nonlinear demand function usually can provide a better fit to the data. For example, one such function is a constant elasticity demand function, where D aPb
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Related Book For
Introduction To Management Science A Modeling And Case Studies Approach With Spreadsheets
ISBN: 9780078096600
4th Edition
Authors: Frederick S. Hillier And Mark S. Hillier
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