Suppose a good has a demand curve given by Q = 20 - 8 × P. What is the price elasticity of demand if the price is $2?

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A: The formula for price elasticity of demand: Elasticity of demand = -∆Q∆P×PQ

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Q: Suppose a good has a demand curve given by Q = 20 - 8P. What is the price elasticity of demand if…

A: Demand curve = Q = 20 - 8P  P = $2

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A:

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Q: a good tends to have a small price elasticity of demand if

A: In economics, goods are the final products that are consumed by the people.

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A: A good tends to have a highly elastic demand if it has many close substitutes.

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A: Income elasticity = ( %Change in demand )/% (chnage in income)

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Q: If a good is a luxury, its income elasticity of demand is

A: To find : What will be income elasticity of demand.

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A: own price elasticity of demand for good X e= -2 Price of good increased by = 10%

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Q: Which of the following statements are true? (i) The absolute value of the price elasticity of demand…

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Q: Suppose a good has a demand curve given by Q = 20 - 8 × P. What is the price elasticity of demand if…

A: Demand curve,  Q = 20 - 8P  Diff. with respect to Q  dQ/dP = -8  Price elasticity of demand = dQ/dP…

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A: Income elasticity measures the percentage change in quantity demand due to percentage change in…

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