Describe the point price elasticity of demand

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Question about Calculating the price elasticity of demand

Demand for DVD rentals at a video store is described by the equation: Q = 4,000 - 500P, where Q denotes the number of DVDs rented per week and P is the rental price in dollars.

a) Determine the point price elasticity of demand at P = $3.00.

b) What is the new point price elasticity if price is raised to P = $4.50?

c) Comment on the change in elasticity.

Reference no: EM1327359

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