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2. Linear demand (a) Prove mathematically that along a linear demand, e decreases as P decreases. (b) Suppose the vertical intercept of a linear
2. Linear demand (a) Prove mathematically that along a linear demand, e decreases as P decreases. (b) Suppose the vertical intercept of a linear demand is 91. What can you say about le| at P = 56? (c) Suppose the horizontal intercept of a linear demand is 44. What can you say about le at Q = 16? (d) Suppose two linear demand curves D and D, have the same vertical intercept and D is steeper than D. i. At any given P, which demand is more elastic? ii. At any given Q, which demand is more elastic? (e) Suppose two linear demand curves D and D, are parallel to each other and D, is higher than D. i. At any given P, which demand is more elastic? ii. At any given Q, which demand is more elastic?
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a To prove mathematically that along a linear demand decreases as P decreases we can start with the equation of a linear demand function Q a bP Where ...Get Instant Access to Expert-Tailored Solutions
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