Assume the demand for good x is log linear with qx c px12, Ask an Expert

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Assume the demand for good X is log linear, with QX = c / (PX)^1/2. (a) If the quantity demanded is 120 when PX is $2.00, what is the quantity demanded when PX rises to $4.50? HINT: Begin by finding the value of the constant c. (b) Using your answer in part (a), find the precise arc price elasticity between $2.00 and $4.50.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91719279

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