Answer
The formula is:
converting the inverse demand function to normal form
P=75-4Q
4Q=75-P
Q=18.75-0.25P
P=25
Q=18.75-0.25*25
Q=12.5
the elasticity of demand is -0.5
Suppose that the demand curve is P = 75 - 4.0 What is the price elasticity of demand when the price is $25?
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