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Hi! I need explanation how to solve this. I stuck at this questions, DIFFERENTIATION AND COMPARATIVE STATICS Suppose that the demand for a product is
Hi! I need explanation how to solve this. I stuck at this questions,
DIFFERENTIATION AND COMPARATIVE STATICS
Suppose that the demand for a product is given ()=600.
a) Find the elasticity of demand at =20
b) Tell what type of elasticity this is: unitary, elastic or inelastic.
Suppose that consumption function is given by = 80 + 8
a) Calculate the value of Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) when =200
b) Give an interpretation on result in (a).
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