Estimate the linear demand curve

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Consider the following table, showing quantity and price data. Assume the data was generated from a succession of random shocks to a supply curve, and that residuals are due to random noise in demand. Estimate the linear demand curve. What is the point elasticity of demand at a price of P = 20? Round your answer to two decimal places.

Quantity

Price

0.5

29.17

1

25.72

1.5

27.85

2

26.45

2.5

21.73

3

26.63

3.5

24.20

4

18.42

4.5

20.43

5

18.96

5.5

16.34

6

20.03

6.5

15.50

7

16.73

7.5

15.88

8

14.57

8.5

14.81

9

11.02

9.5

11.04

10

7.10

Reference no: EM133082337

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