2- The demand schedule of the product is given below Price $ (P) Quantity (Q) 100 1 90 2 80 3 70 4 60 5 50 40 7 30 8 20 9 10 10 a) Calculate the arc price elasticity as the price decrease from 40 to 30$ and interpret the result. b) What are the determinants of price elasticity of demand?

2- The demand schedule of the product is given below Price $ (P) Quantity (Q) 100 1 90 2 80 3 70 4 60 5 50 40 7 30 8 20 9 10 10 a) Calculate the arc price elasticity as the price decrease from 40 to 30$ and interpret the result. b) What are the determinants of price elasticity of demand?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

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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Question

2- The demand schedule of the product is given below
Price $ (P)
Quantity (Q)
100
1
90
2
80
3
70
4
60
5
50
40
7
30
8
20
9
10
10
a) Calculate the arc price elasticity as the price decrease from 40 to 30$ and interpret the result.
b) What are the determinants of price elasticity of demand?

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