Question
Suppose the two price and quantity combinations (Q=10, P = 31) and (Q = 202, P = 3) lie on the market demand curve. Solve
Suppose the two price and quantity combinations (Q=10, P = 31) and (Q = 202, P = 3) lie on the market demand curve.
Solve for the market demand curve equation in the form
P = a - bQ
What is a + b?
Enter your answer as a number to 2 decimal places.
NOTE: ADD THE ABSOLUTE VALUES OF a AND b TOGETHER, E.G. IF P = 100 - 5Q, THEN a + b = 105.
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Introductory Econometrics A Modern Approach
Authors: Jeffrey M. Wooldridge
4th edition
978-0324581621, 324581629, 324660545, 978-0324660548
