Let a linear demand function be expressed as q a bp where
Let a linear demand function be expressed as Q = a + bP, where b < 0.
a. Express the point elasticity of demand as a function of Q and a only.
b. Take the dericated dE/dQ adn verify that demand becomes less elastic moving down the demand curve.
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Let a linear demand function be expressed as Q = a + bP, where b < 0. a. Express the point elasticity of demand as a function of Q and a only. b. Take the dericated dE/dQ adn verify that demand becomes less elastic moving down the demand curve.
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