Calculate the elasticity of demand betwen two prices

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When the price of squiggles is $700, 2200 units are demaded. When the price per unit of squiggles is $300, 4200 units of squiggles are demanded.

1) Use these two points and calculate the estimated demand function ( You are estimating a straight line demand function going through these two points. You can write P as a function of Q or R as function of P.)

2) Calculate the elasticity of demand between a price of $300 and price of $320

3) Calculate the elasticity of demand betwen a price of $700 and price of $720

4) Given your estimated demand function, how much would you estimate to be demanded when the price is $500?

Reference no: EM13224836

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