Calculate price elasticity of demand at point c

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Reference no: EM132618091

1) Draw the demand curve (put price on y-axis & quantity on x-axis).

2) Calculate price elasticity of demand between points C & D.

3) Calculate price elasticity of demand at point C.

(b) Show that when demand is elastic, ie |Ep|>1, total revenue, R, increases as price decreases.

Reference no: EM132618091

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