The equation for a demand curve has been estimated to be 0 - 100 - 10 P
Question:
a. Interpret the equation.
b. At a price of 7, what is price elasticity?
c. At an income level of 50, what is income elasticity?
d. Now assume income is 70. What is the price elasticity at P = 8?
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Related Book For
Managerial Economics
ISBN: 978-0133020267
7th edition
Authors: Paul Keat, Philip K Young, Steve Erfle
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