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Figure 2.6.2 -When Demand Is Written as Q = a - BP

Question 68

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Figure 2.6.2 -When demand is written as Q = a - bP, and P* and Q* are the equilibrium values for price and quantity, which of the following is the value of the price elasticity of demand, E<sub>D</sub>? A) -a(P*/Q*) B) -b(P*/Q*) C) -a/b D) -b/a Figure 2.6.2
-When demand is written as Q = a - bP, and P* and Q* are the equilibrium values for price and quantity, which of the following is the value of the price elasticity of demand, ED?


A) -a(P*/Q*)
B) -b(P*/Q*)
C) -a/b
D) -b/a

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