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Managerial Economics 7th Edition by Paul Keat ,Philip Young,Steve Erfle
Edition 7ISBN: 978-0133020267Managerial Economics 7th Edition by Paul Keat ,Philip Young,Steve Erfle
Edition 7ISBN: 978-0133020267 Exercise 2
The demand function for a cola-type soft drink in general is Q = 20 - 2 P , where Q stands for quantity and P stands for price.
a. Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points
b. Calculate arc elasticity at the interval between P = 5 and P = 6.
c. At which price would a change in price and quantity result in approximately no change in total revenue Why
a. Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points
b. Calculate arc elasticity at the interval between P = 5 and P = 6.
c. At which price would a change in price and quantity result in approximately no change in total revenue Why
Explanation
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Elasticity of demand: It is the ratio of...
Managerial Economics 7th Edition by Paul Keat ,Philip Young,Steve Erfle
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