Elasticity_Problems_Corrected[1]

Elasticity_Problems_Corrected[1] - elasticity of...

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Elasticity Problems When the product demand curve is Q = 2,000 – 4P, and price is decreased from P 1 = $350 to P 2 = $325, what is the arc price elasticity of demand? 700 – 600 divided by 325 – 350 = -2.076 700 + 600 325 + 350 When the product demand curve is P = $500 - $0.25Q, and Q = 600, what is the point
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Unformatted text preview: elasticity of demand? (-4)350 = -2.33 600 If the point price elasticity of demand equals -5 and the marginal cost per unit is $25, what is the optimal price? P = $25 __ = $31.25 1 + 1/-5...
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