Estimate a Demand Line from 2 points Suppose you are selling trinkets and are trying to estimate your demand schedule. T

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Estimate A Demand Line From 2 Points Suppose You Are Selling Trinkets And Are Trying To Estimate Your Demand Schedule T 1 (29.24 KiB) Viewed 20 times

Estimate a Demand Line from 2 points Suppose you are selling trinkets and are trying to estimate your demand schedule. To gather data you adjust your prices to see how the quantity responds. You find two points that you believe are sufficiently representative to plot. At a $30 price you sell 100 units. If you lower your price to $20, you sell 150 units. Point 1: (Quantity, Price) (100, $30) Point 2: (Quantity, Price) (150, $20) Solve for the demand schedule that has the form P=a-bQ, where a=vertical intercept and b=slope. Question 2 What is the equation for the demand schedule in P=a-bQ form? a. 50-0.20 b. 100-0.20 c. 150-0.20 d. 50-20 e. 100-20 f. 150-20 E B A F