Compute the point price elasticity of demand

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Reference no: EM1361756

The demand curve is: Qd = 500 - 1/2 P.

a. Calculate the (point) price elasticity of demand when price is $100. Is demand elastic or inelastic?

b. Calculate the (point) price elasticity of demand when price is $700. Is demand elastic or inelastic?

c. Find the point at which point elasticity is equal to -1.

Reference no: EM1361756

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