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You work for a firm producing fitness equipment. The firm tells you that the demand curve for the firm's main producta multi-station home gymis linear.
You work for a firm producing fitness equipment. The firm tells you that the demand curve for the firm's main producta multi-station home gymis linear. You have in hand price and quantity data obtained from focus groups and instructions to run a regression of revenue on price.
Question: Should you use a linear functional formwith revenue as a linear function of priceor something else? Explain clearly 25-30 words.
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