ompute the elasticity of demand and determine whether the demand is elastic

Calculus
Tutor: None Selected Time limit: 1 Day

Jul 8th, 2015

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0.8 x=  14-7

x= 8.75

If p =10

0.8x = 14-10

x= 5

Change in p of $3, results in change in x or quantity of 3.75 units

% change in price = 3/7 *100

% change in quantity = 3.75/8.75 *100

Hence the % change in p of 42.86% results in a change in demand of 42.86%

E(7) = 1

Unitary

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Jul 8th, 2015

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