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The company I work for charges $60 for a boardgame we invented and has sold exactly 3000 copies last year. Elasticity for the game is three.

The company I work for charges $60 for a boardgame we invented and has sold exactly 3000 copies last year. Elasticity for the game is three. Please determine a linear curve as well as a power demand curve.


My current attempt:


Price (P) = $60

N = 3000

Elasticity = 3


Elasticity Demand = (dQ/dP) * P/Q

3 = (dQ/dP) * 60/3000

(dQ/dP) = 3000*3/60

= 150



P=60

Q=3000

dQ/dP = 150

               60 = a - 150(3000)

               a = 450060


n = 50P

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The linear demand curve is: Q =... View the full answer

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