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The demand function is given by: Q: Y e' "'01P.
a) If Y = 800, calculate the value of P for which the demand is unit elastic.
b] If Y = 800. find the price elasticity of the demand at current price of 150.
c) Estimate the percentage change in demand when the price increases by 4% from current level of 150 and Y = 800.
Suppose the price level and value of the U.S. Dollar in year 1 are 1 and $1, respectively.
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