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TASK 1 Suppose the demand curve is Q]; = 400 - 5P 1) Compute the price elasticity of demand at QB: 15 and at QB:

TASK 1 Suppose the demand curve is Q]; = 400 - 5P 1) Compute the price elasticity of demand at QB: 15 and at QB: 375 2) Is the point elasticity elastic or inelastic? 3) How much is total revenue at QB: 15 and at QB: 375 4) 15 total revenue maximised? Why? Tip: Use the elasticity to calculate marginal revenue

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