. The demand curve for a product is given by Q=1,000 - 2P, +.02P where P, = $400. a. What is the own price elasticity of demand when P, = $154? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $154?
. The demand curve for a product is given by Q=1,000 - 2P, +.02P where P, = $400. a. What is the own price elasticity of demand when P, = $154? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $154?
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 2.5P: (Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more...
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