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1.Consider the following demand curve: Q = 100 2 (a) What is the price elasticity of demand at the point p = 5 and Q
1.Consider the following demand curve: Q = 100 2
(a) What is the price elasticity of demand at the point p = 5 and Q = 50? (hint: you are considering the responsiveness of Q to a one unit increase in p)
(b) What is the price elasticity of demand at the point p = 1 and Q = 98? (hint: you are considering the responsiveness of Q to a one unit increase in p)
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