Essay
The demand curve is: QD = 500 - 1/2 P.
a.Calculate the (point)price elasticity of demand when price is $100.Is demand elastic or inelastic?
b.Calculate the (point)price elasticity of demand when price is $700.Is demand elastic or inelastic?
c.Find the point at which point elasticity is equal to -1.
Correct Answer:
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a.Elasticity = -1/2 (100/450)= -0.11,and...View Answer
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