Suppose the demand curve for a product is given by Q=18−1P+3PS where P is the price of the product and PS is the price of a substitute good. The price of the substitute good is $2.70. Suppose P=$0.60. The price elasticity of demand is?
Suppose the demand curve for a product is given by Q=18−1P+3PS where P is the price of the product and PS is the price of a substitute good. The price of the substitute good is $2.70. Suppose P=$0.60. The price elasticity of demand is?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section: Chapter Questions
Problem 3QP: Prove that price elasticity of demand is not the same as the slope of a demand curve.
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Question
Suppose the demand curve for a product is given by
Q=18−1P+3PS
where P is the price of the product and
PS
is the price of a substitute good. The price of the substitute good is
$2.70.
Suppose
price elasticity of demand is?
P=$0.60.
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