Question

of ber of registered vehicles. What is the elasticity demand for ethanol? (Hint: See Q&A 3.2.) 1.5 The demand curve for a good is Q = 1,000-2p2 What is the elasticity at the point p 10 and Q 800? C 1.6 Which section of a straight-line demand curve is elastic? *1.7 According to Duffy-Deno (2003), when the price of broadband access capacity (the amount of infor- mation one can send over an Internet connection) increases 10%, commercial customers buy about 3.8% less capacity. What is the elasticity of demand for broadband access capacity for these firms? Is demand at the current price inelastic? 1.8 Suppose that the demand curve for wheat in each country is inelastic up to some "choke" price p*-a

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Answer 1