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Roberts demand curve for good X is given by the equation X = 100 - 2PX. a. What is the elasticity of demand at the
Robert’s demand curve for good X is given by the equation X = 100 - 2PX.
a. What is the elasticity of demand at the point X=20, PX =40?
b. If price falls from PX =40 to PY =35, what happens to total spending for X and what does this imply about the elasticity of demand?
c. Compute the elasticity to verify the answer.
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