Compute the elasticities for each independent variable

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Reference no: EM131113096

Using the formula and information given, first calculate the Q Q = -5,200 – 42(500) + 20(600) + 5.2(5,500) + 0.20(10,000) + 0.25(5,000) = Now we can compute the elasticities for each independent variable: ED = ∂QD/∂P * P/QD = – 42 * 500/Q (what you calculated above) = Similarly for other elasticities

Reference no: EM131113096

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Compute the elasticities for each independent variable : Using the formula and information given, first calculate the Q Q = -5,200 – 42(500) + 20(600) + 5.2(5,500) + 0.20(10,000) + 0.25(5,000) = Now we can compute the elasticities for each independent variable: ED = ∂QD/∂P * P/QD = – 42 * 500/Q (what you c..

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