1] Suppose you observe that when the price of a good is $10, consumers demand 200 units. If the price falls to $8, the quantity demanded rises to 300. If the demand takes on a point-slope linear functional form, the implied demand equation is _______________.

a.P = 14 - 0.02Q

b.P = 12 - 0.02Q

c.P = 14 - 50Q

d.P = 28 - 5Q

2] Suppose you found in a published study that the own-price elasticity of demand for a good is - 0.5. The consumers currently purchase 300 units at the price of $20 each unit. If the demand takes on a point-slope linear functional form, the implied demand equation is _______________.

a.P = 60 - 0.1333Q

b.P = 60 - 7.5Q

c.P = 40 - 0.25Q

d.P = 80 - 0.6667Q