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Suppose that the inverse demand curve for beef is given by: P, = 4-0.5Q+
0.5P., P, is the price of beef in USD/lb, and P, is the price of chicken = 2.50
USD/lb. If P, = 4, then the own price elasticity of demand is:
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Measurements of elasticity

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Transcribed Image Text

Suppose that the inverse demand curve for beef is given by: P, = 4-0.5Q+ 0.5P., P, is the price of beef in USD/lb, and P, is the price of chicken = 2.50 USD/lb. If P, = 4, then the own price elasticity of demand is: