Mr Smith has the following demand equation for a certain
Mr. Smith has the following demand equation for a certain product: Q = 30 – 2P.
a. At a price of $7, what is the point elasticity?
b. Between prices of S5 and $6, what is the arc elasticity?
c. If the market is made up of 100 individuals with demand curves identical to Mr. Smith’s, what will be the point and arc elasticity for the conditions specified in parts a and b?
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