Estimated Linear Demand Curve

[linear]

If you have the following equations how do you solve for P given these equations are simultaneous?
When price was$12, 3200 units were sold. So 12= a+b(3200)
When price was $10, 4000 unis were sold. So 10= a+b(4000)

 

[stapel]

If you have the following equations how do you solve for P given these equations are simultaneous?
When price was$12, 3200 units were sold. So 12= a+b(3200)
When price was $10, 4000 unis were sold. So 10= a+b(4000)

Since neither equation contains the variable "P", there is no way to "solve for P". Sorry.

 

[linear]

There is a way to solve for P. I don't know the steps, that is my question, how do you solve for P?

 

[HallsofIvy]

It looks to me as if you are taking your basic equation to be P= a+ bQ where "P" is the price and "Q" is the quantity sold. That is already "solved for P". Apparently you want to solve 12= a+b(3200) and 10= a+b(4000) for a and b. If you subtract the first equation from the second, you eliminate a and b. 10- 12= -2= (a+ b(4000))- (a+ b(3200))= 800b or -2= 800b.

 

[Steven G]

If you have the following equations how do you solve for P given these equations are simultaneous?
When price was$12, 3200 units were sold. So 12= a+b(3200)
When price was $10, 4000 unis were sold. So 10= a+b(4000)

If you do not say what P represents then we really can't help you solve for P. I can only assume that P represents price. Let Q = quantity sold. Then P =a + bQ. Using the two equations you need to solve for a and b. Let us say for a moment that a=4 and b=5. Then your answer would be P = 4 + 5Q. In the future you really need to define your variables.