Answer to Question #70957 in Microeconomics for oluwaseun adeagbo

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.