Question
a) When the price of digital SLR cameras was $2,000, consumers bought 4,000 units. When the price fell to $1,200, consumers bought 14,000 units. Using
a) When the price of digital SLR cameras was $2,000, consumers bought 4,000 units. When the price fell to $1,200, consumers bought 14,000 units. Using the midpoint method, calculate the price elasticity of demand between these two prices.
b) From your answer computed in part a, is demand elastic, unit elastic or inelastic? Explain why.
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Price theory and applications
Authors: Steven E landsburg
8th edition
538746459, 1133008321, 780538746458, 9781133008323, 978-0538746458
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