(iv) If we operate under the assumption of ceteris paribus , what is the best li
ID: 1199441 • Letter: #
Question
(iv) If we operate under the assumption of ceteris paribus, what is the best linear representation of the demand faced by the firm [please provide the equation for the demand in terms of Q = f(P)]. Hint: This is just solving for the equation of the line…so solve for slope and intercept.
Recall that to get the equation of a line we can choose one point and note:
(Y – Y1) = M(X – X1) à in this case your point would be (X1, Y1) à (P,Q) where M =
(v) If we continue to operate under the assumption that the demand is linear, what prediction can you make about the firm's level of sales at the price of $8? Use your solution to predict this.
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(iv) If we operate under the assumption of ceteris paribus , what is the best li
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