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Demand for a managerial economics text is given by Q=20,000-300P. The book is initially priced at $30.00.

a. Compute the point price elasticity of demand at P=$30

b. If the objective is to increase total revenue, should the price be increased or decreased? Explain.

c. Compute the arc price elasticity for a price decrease from $30 to $20.

d. Compute the arc price elasticity of a price decrease from $20 to $15.

Write the demand equation for which the price elasticity of demand is zero for all prices.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9292712

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