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Answer to Question #89645 in Microeconomics for USMAN
Question #89645
Calculate price elasticity of demand using point elasticity method when the company is in equilibrium and interpret the result.
Expert's answer
Point elasticity is the price elasticity of demand at a specific point on the demand curve instead of over a range of it.
If Qd = a - b×P, then Ed = -b×P/Q.
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