**Inverse Demand Function for Good X:**The inverse demand function is expressed as:\[ P = 150 - Q \]**Point Price Elasticity of Demand:**To determine the point price elasticity of demand when the marginal revenue (MR) is zero, we need to complete the calculation which is represented by the blank:\[ \text{Elasticity is } \_\_\_\_\_\_ \]**Explanation:**In this demand function, $ P $ represents the price, and $ Q $ denotes the quantity demanded. The slope of the demand curve is constant since it is a linear function.The given condition, MR = 0, typically implies that the firm is operating at a quantity where total revenue is maximized. To find the point price elasticity of demand at this quantity, the relationship between marginal revenue, elasticity, and price should be considered.

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Economics

Inverse Demand function for good X is: P = 150 -Q The point price elasticity of demand when MR = 0 is

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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