Assume that the demand function for a certain item is Q = 250 - 0.8p. How big is the demand elasticity at the point of the demand curve where the price of the product is 52. A) 0.8. B) - 0.8 C) 0.2. D) - 0.2. (right answer is D, but I need step by step to come to this conclusion)
Assume that the demand function for a certain item is Q = 250 - 0.8p. How big is the demand elasticity at the point of the demand curve where the price of the product is 52. A) 0.8. B) - 0.8 C) 0.2. D) - 0.2. (right answer is D, but I need step by step to come to this conclusion)
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 34P: The equation for a demand curve is P=2/Q. What is the elasticity of demand as price falls from 5 to...
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