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Price Per Hour of Therapy Demand for Therapy 0 16 1 15 2 14 3 13 4 12 5 11 6 10 7 9 8
Price Per Hour of Therapy Demand for Therapy 0 16 1 15 2 14 3 13 4 12 5 11 6 10 7 9 8 8 9 7 10 6 11 5 12 4 13 3 14 2 15 1 16 0Part A: I am desperately trying to impress my girlfriend but to no avail. She is a student at TWU and will only read my Tweets (now Xs) if I can estimate the elasticity of demand for the data shown in the table below. Please help me by estimating elasticity for two price changes: a) price increase from $2 to $6 per hour increase from $4 to $9 per hour. Part B question: Considering the previous problem, did you get the same estimates of elasticity for the two changes in price (from $2 to $6 per hour; and from $4 to $9 per hour)? If you did, explain why. If you did not, explain why. c) Explain what your calculations of elasticity from the previous question mean to the administrators of the physical therapy unit. ChatGPT Let's calculate the elasticity for the two price changes using the midpoint formula: Price increase from $2 to $6 per hour: Percentage
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