At price of Rs.5 quantity demanded is 10 units and at price of Rs.6, demand is 8 units. Calculate the market demand when price is Rs.4
Slope of demand curve = (P2-P1) / (Q2-Q1) = (6-5) / (8-10) = - 1/2 So, P = a-1/2 Q When P=5, Q = 10 units 5 = a- 1/2 (10) a = 10 So, inverse Demand curve is P = 10- 1/2Q When P=4 Q=12
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