Prove That the Linear Demand Curve $Q = a - b P$

question 10

Essay

Prove that the linear demand curve, $Q = a - b P$ ,where $\alpha$ and $b$ are positive constants,is unit elastic at its mid-point.

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Definitions:

Productively

Relating to or in a manner that results in a significant output or contribution, especially in terms of work or economic activity.

Statistician

A professional who specializes in the collection, analysis, interpretation, and presentation of quantitative data.

Unemployment Rate

The proportion of the workforce that is unemployed and actively searching for work.

Null Hypotheses

The presumption that there is no significant difference or effect, typically the starting point for statistical testing.