Problem

ELASTICITY OF DEMAND Suppose that the demand equation for a certain commodity is q = 60 −0...

ELASTICITY OF DEMAND Suppose that the demand equation for a certain commodity is q = 60 −0.1 p (for 0 ≤p ≤600).

a. Express the elasticity of demand as a function of p.


b. Calculate the elasticity of demand when the price is p = 200. Interpret your answer.


c. At what price is the elasticity of demand equal to − 1?

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