What is the specific form of the actual demand function

Reference no: EM131481762

Question: 1. A monopoly sells 30 units of output when price is £12 and 40 units when price is £10. If its demand schedule is linear, what is the specific form of the actual demand function? Use this function to predict quantity sold when price is £8. What domain restrictions would you put on this demand function?

2. Assume that consumption C depends on income Y according to the function C = a + bY , where a and b are parameters. If C is £60 when Y is £40 and C is £90 when Y is £80, what are the values of the parameters a and b?

Reference no: EM131481762

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