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:

Journal Entry

A record in the accounts of a business, documenting a financial transaction with both debit and credit parts.

Direct Labor Costs

Expenses associated directly with the manufacturing of a product, including wages of workers actually making the product.

Indirect Labor Costs

Costs associated with employees who do not directly work on the product but are necessary for the manufacturing process.

Work in Process

Inventory consisting of items that are in the process of being manufactured but are not yet complete.