2. [Own Price Elasticity of Demand]Given a demand function Q=f(P), the own price elasticity of demand is defined asP- (de). (2).ε =What is the own price elasticity of demand e(a) for the linear demand function Q = 200-3.5P when P = 10.(b) for the linear inverse demand function P= 100-3.5Q when Q = 10.(c) for the inverse demand function P=Q-35, when (i) Q = 5; (ii) Q = 10.

Price elasticity of demand measures the percentage change in quantity demand due to a change in…

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Given a demand function Q=f(P), the own price elasticity of demand is defined as e= (dº) · (²). WL

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Chapter1: Making Economics Decisions

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Question

2. [Own Price Elasticity of Demand]
Given a demand function Q=f(P), the own price elasticity of demand is defined as
P
- (de). (2).
ε =
What is the own price elasticity of demand e
(a) for the linear demand function Q = 200-3.5P when P = 10.
(b) for the linear inverse demand function P= 100-3.5Q when Q = 10.
(c) for the inverse demand function P=Q-35, when (i) Q = 5; (ii) Q = 10.

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