I believe the linear demand function is,
Qd = a - bP, where -b is the slope.
Is the required slope, -b = (Qd - a)/P?
krishna asked 2 years ago
Yes, Krishna, -b = (Qd - a)/P is the slope. I've computed it below using the graph.
The function of linear demand function is,
Qd = a - bP where Qd is the quantity demanded, a, b > 0, and P is the price.
-b is the slope. The negative represents if the price increases then quantity demand decreases.
To compute slope, (P1, Q1dQ_1^dQ1d) is point of departure .(P2, Q2dQ_2^dQ2d) is point of arrival.
Slope = Q2d − Q1dP2 − P1\frac{Q_2^d \, - \, Q_1^d}{P_2 \, - \, P_1}P2−P1Q2d−Q1d = +ve−ve\frac{+ve}{-ve}−ve+ve = negative result
where, P1 > P2
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Yes, Krishna, -b = (Qd - a)/P is the slope. I've computed it below using the graph.
The function of linear demand function is,
Qd = a - bP where Qd is the quantity demanded, a, b > 0, and P is the price.
-b is the slope. The negative represents if the price increases then quantity demand decreases.
To compute slope,Q1d ) is point of departure Q2d ) is point of arrival.
(P1,
.(P2,
Slope =P2−P1Q2d−Q1d = −ve+ve = negative result
where, P1 > P2