2.25. The demand for dinners in the only restaurant in town has a unitary price elasticity of...

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2.25. The demand for dinners in the only restaurant in town has a unitary price elasticity of demand when the current average price of a dinner is $8. At that price 120 people eat dinners at the restaurant every evening.

a) Find a linear demand curve that fits this information and draw it on a clearly labeled graph.

b) Do you need the information on the price elasticity of demand to find the curve? Why?

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Oct 12, 2024 09:00 AM

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