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Suppose that two price-quantity demanded combinations for some product are ($1.20, 90 units) and ($0.80, 110 units). Using the mid points variation of the arc own price elasticity of demand formula, calculate the coefficient of elasticity for both a price increase and a price decrease.
Calculation for a price increase
Calculation for a price decrease
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Illustrate what is the present value assuming a discount rate. Level of consumption or saving will be illustrate what.
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