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Question: For each of the following demand functions: (a) Q = 70 -1.5P (b) Q = 120p -1/2 Calculate: (i) The arc price elasticity of

Question:

For each of the following demand functions:

(a) Q = 70 -1.5P

(b) Q = 120p-1/2

Calculate:

(i) The arc price elasticity of demand for a reduction in price from p =30 to p =20,

and

(ii) The point price elasticity of demand at p = 30 and at p = 20.

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