Answered: qD = 100 – 0.5p, qS = 2p – 20 What is…

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qD = 100 – 0.5p, qS = 2p – 20 What is the price elasticity of demand? Classify and interpret it.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section: Chapter Questions

Problem 3QP: Prove that price elasticity of demand is not the same as the slope of a demand curve.

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q^D= 100 – 0.5p, q^S = 2p – 20

What is the price elasticity of demand? Classify and interpret it.

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Price elasticity of demand measures the responsiveness of quantity demanded with respect to change in price.

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