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Unformatted text preview: it ewuals the percent change in quantity demanded in response to 1% change in pricenegative price elasticity is consistend with law of demandprice elasticity varies by where you are (P,Q) on the demand curveE=(change in Q)/(change in P) x (P/Q)Qd=abPdemand in called inelastic if 1 is less than or equal to E which is less than 0in percentage terms, quantity changes less than pricedemand is called perfectly inelastic if E=0demand is called elastic if E < 1in ercentage terms, quantity changes more than pricedemand is called perfectly elastic if E =  infinityin percentage terms, quantity changes exactly as much as priceprice high, quantity low, relatively inelastic...
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This note was uploaded on 11/27/2008 for the course PAM 2000 taught by Professor Evans,t. during the Fall '07 term at Cornell University (Engineering School).
 Fall '07
 EVANS,T.

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