# Developing a Linear Demand Function

Task: Develop a linear demand function for the following data:

Price elasticity = -0.50

Income elasticity = 1.5

Price per gallon = $3.50

Consumption = 10 million barrels per day

Income = $12 trillion.

https://brainmass.com/economics/demand-supply/developing-linear-demand-function-573220

#### Solution Preview

Let the demand function be Q=a+bP+cI

Where P=Price per gallon (in dollars)

I=income (in trillion dollars)

Q=consumption/demand (million barrels)

a,b,c are constants

We need to find the values of a,b and c to ...

#### Solution Summary

This solution illustrates how to develop a linear demand function with the help of the information provided.

$2.19