The marketing department of Acme Inc. has estimated the following demand function for its popular carpet deodorizer,

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The marketing department of Acme Inc. has estimated the following demand function for its popular carpet deodorizer, Freshbreeze: Q = 100−5p, where Q is the quantity of an 8-ounce box (sold in thousand units) and p the price of an 8-ounce box. Using Excel, calculate the point price elasticity of demand, ε, for price, p = 1, 2, 3, …, 19. Describe the pattern of price elasticity of demand that you have calculated along the demand curve. 

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Managerial Economics and Strategy

ISBN: 978-0134167879

2nd edition

Authors: Jeffrey M. Perloff, James A. Brander

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