Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For question a., where does the 4.921 come from? Q = P = 163.3984 - 0.2032 Q 0.2032 Q = 163.3984 - P Q

For question a., where does the "4.921" come from?

Q = P = 163.3984 - 0.2032 Q

0.2032 Q = 163.3984 - P

Q = (163.3984 - P) / 0.2032

Q = 163.3984/0.2032 - P/0.2032

Q = 804.126 - 4.921 P

What number is "P" to get to the 4.921.

163.3984/0.2032 = 804.126

But I don't know where to get 4.921 from? It says "P/0.2032" but I don't know what number "P" is. Can you please help me with this?

---

Step-by-Step explanation

to determine the demand function as P = f(Q)

P = f(Q)

P = 163.3984 - 0.2032 Q

Confidence = adjusted R square = 0.9131 = 91.31% of confidence. Use algebra to invert the demand function to Q = f(P).

Q = P = 163.3984 - 0.2032 Q

0.2032 Q = 163.3984 - P

Q = (163.3984 - P) / 0.2032

Q = 163.3984/0.2032 - P/0.2032

Q = 804.126 - 4.921 P

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economic Development Of Latin America Since Independence

Authors: Luis Bértola, Luis Bértola

1st Edition

0191638242, 9780191638244

More Books

Students also viewed these Economics questions