2 b <0 b=0 0 1 3 a = 10 -0.25 0 0.5 1 1.5 Choose values for b, see suggested values 4 0.25 14.14 10.00 5.00 2.50 1.25 5 0.50 11.89 10.00 7.07 5.00 3.54 45.00 6 0.75 10.75 10.00 8.66 7.50 6.50 Choose value of a, 7 #DIV/0! #NUM! 40.00 any positive 8 number, say 10 #DIV/0! #NUM! 35.00 9 #DIV/0! #NUM! 10 Choose incremental 30.00 11 values of x, 12 fill the x column 13 2.50 #DIV/0! #NUM! #DIV/0! #NUM! #DIV/0! 7.95 25.00 #NUM! 20.00 10.00 15.81 25.00 39.53 4 15.00 15 10.00 16 5.00 17 18 This exercise is designed to help students think in terms of "mental models" and evaluate 9 reasonable assumptions 20 21 When b <0, interpret ation is 22 When b=0, interpret ation is 23 When 0 1, interpret ation is 26 27 The models assume that ... put your answer here 28 29 30 Also, we do not consider any other factors that affect the demand. Intuitively, the most appropriate model is when b .. 31 put your answer here 0.25 0.50 0.75 2.50 b <0 -0.25 b=00 0 1 1.5