HI
in equation p=a-bq if changes in price be increase or decrease if it has affected the sign of "b"(positive or negative)?
thanks
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the sign of "b" in p=a-bq
7y ago#1This is not a maths exam!
It is of no relevant what the sign of 'b' is. The price is always equal to a - bQ. Ignore the sign of b.
Do watch my free lectures on this. Then it should be obvious that for a higher Q, then the price must always be lower.
It is no good just learning rules - only 50% of the exam involves calculations. The rest of it is testing that you understand what is happening :-)
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