The demand for a good at price P is given by Q = a + pl-b where Q is quantity demanded, b> 1, and a > 0. The price elasticity of demand at price P = 1 equals OA (1-6)/(1+a) ⒸB. (1+b)/(1-a) 0c1-b OD. (1-a)/(1+b)

The demand for a good at price P is given by Q = a + pl-b where Q is quantity demanded, b> 1, and a > 0. The price elasticity of demand at price P = 1 equals OA (1-6)/(1+a) ⒸB. (1+b)/(1-a) 0c1-b OD. (1-a)/(1+b)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The demand for a good at price P is given by Q = a + pl-b where Q is quantity demanded, b> 1, and a > 0. The price elasticity of demand at price P = 1 equals
OA. (1-b)/(1+a)
OB. (1+b)/(1-a)
OC.1-b
OD. (1-a)/(1+b)

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