Unit 2 micro redo - including the availability of...

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Elizabeth Daniels Unit 2 Microeconomics 1. pEd=(% change demand)/(% change price) pEd=(20-385)*100/385)/(3.50-3.00)*100/3.00) pEd=(-365/385)/(0.50/3.00) pEd=-5.688. .. 2. Demand is inelastic when 0<|pEd|<1 3. My demanation is the paint is elastic because the price can be influenced by several factors
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Unformatted text preview: including the availability of substituted goods, luxury value and proportion of a persons budget. When the product is a luxuary people don't buy if the economy is not good for them. The price goes up for a luxury product in a bad economy....
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