Question

Find the slope of an assumed linear demand curve for garri, when Mr. Anthony purchase 1000 quantities at N200 per plastic and 500 quantities at N350 per plastic?

Answer 1

Function of demand is Q = a – b*P, where b – slope of an assumed linear demand curve, b = -((Q2 – Q1) / (P2 – P1)) = -((1000-500)/(200-350)) = 3.33. So, slope of an assumed linear demand curve is 3.33.