Let the demand function for overnight hotel stays in a city be given byq (p) = 900 - 10p (p: price in E per night;
Let the demand function for overnight hotel stays in a city be given byq (p) = 900 - 10p (p: price in E per night; q: number of nights in 1000). At what price is the Price elasticity of demand & = -2? Justify your answer by appropriate calculations (Note: The price elasticity of demand is given by: & = 29 . 2 dp
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