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Hi Sir,
QUestion 68- multiple choice part 1 – Kaplan 2015.
I am wondering how is correct formula: P= a+ bQ or P= a-bQ?I used to work with the P= a-bQ, however in the solution they have
P=a+bQ!
And they have also b=-20/1000. Should it be 20/1000 more correct?
Thank yo for your answer.
I don’t have the Kaplan Kit, only the BPP one.
However, it doesn’t matter which way round you remember the formula. The point is that if you think about it, for bigger Q then P must sensibly be smaller.
So the answer is always “a” minus something.
I would simply write b as 20/1000, and then P = a – 20/1000Q
If they write b = – 20/1000 and then P = a + (- 20/1000)Q then it is exactly the same!!
(adding a minus figure is the same as subtracting the figure)
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