A5 Q4. (a) Suppose a decrease in price from $100 to $5 causes an increase in Q from 1008 to 120. Calculateprice elasticity of demand.(b) Given the demand equation, P = 100-1/aQ, calculate the price elasticity of demand when P = $20.

Given At price P1 = 10α quantity demanded Q1= 100β At price P2 =$5, quantity demanded Q2 =120 We…

Answered: Q4. (a) Suppose a decrease in price…

Q4. (a) Suppose a decrease in price from $100 to $5 causes an increase in Q from 1008 to 120. Calculate price elasticity of demand.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section5.1: The Elasticity Of Demand

Problem 1QQ: Define the price elasticity of demand. Explain the relationship between total revenue and the price...

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Q4. (a) Suppose a decrease in price from $100 to $5 causes an increase in Q from 1008 to 120. Calculate
price elasticity of demand.
(b) Given the demand equation, P = 100-1/aQ, calculate the price elasticity of demand when P = $20.

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