Suppose a decrease in price from $10a to $5 causes an increase in Q D from 1003 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.

Suppose a decrease in price from $10a to $5 causes an increase in Q D from 1003 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.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section19.1: Elasticity: Part 1

Problem 1ST: On Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the...

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Question

Suppose a decrease in price from $10a to $5
causes an increase in Q D from 1003 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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