2. Linear demand (a) Prove mathematically that along a linear demand, e decreases as P decreases....

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2. Linear demand (a) Prove mathematically that along a linear demand, e decreases as P decreases. (b) Suppose the vertical intercept of a linear demand is 91. What can you say about le| at P = 56? (c) Suppose the horizontal intercept of a linear demand is 44. What can you say about le at Q = 16? (d) Suppose two linear demand curves D₁ and D, have the same vertical intercept and D₁ is steeper than D₂. i. At any given P, which demand is more elastic? ii. At any given Q, which demand is more elastic? (e) Suppose two linear demand curves D₁ and D, are parallel to each other and D, is higher than D₂. i. At any given P, which demand is more elastic? ii. At any given Q, which demand is more elastic? 2. Linear demand (a) Prove mathematically that along a linear demand, e decreases as P decreases. (b) Suppose the vertical intercept of a linear demand is 91. What can you say about le| at P = 56? (c) Suppose the horizontal intercept of a linear demand is 44. What can you say about le at Q = 16? (d) Suppose two linear demand curves D₁ and D, have the same vertical intercept and D₁ is steeper than D₂. i. At any given P, which demand is more elastic? ii. At any given Q, which demand is more elastic? (e) Suppose two linear demand curves D₁ and D, are parallel to each other and D, is higher than D₂. i. At any given P, which demand is more elastic? ii. At any given Q, which demand is more elastic?

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a To prove mathematically that along a linear demand decreases as P decreases we can start with the equation of a linear demand function Q a bP Where ... View the full answer