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  3. 1 estimate demand a suppose you are given this information...

Question: 1 estimate demand a suppose you are given this information...

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1. Estimate Demand

a. Suppose you are given this information from a consumer making rational, optimized decisions. Sketch a graph of demand for “theater movies” using the available data. Price Quantity Price of of : «พื้ @พื้ of Quantity Theater Home Theater of Home Budget Movies Videos MoviesVideos 100 100 100 100 20 15 10 2 2 2 2 25 25 25 25 8

b. Estimate the linear demand curve (i.e., 𝑝𝑇𝑀 = 𝛼 + 𝛽𝑞𝑇𝑀) for “theater movies” that best approximates the data and add it to your graph.

c. What is the point (price and quantity) at which demand is “unit elastic”?

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