Compute the Price of Elasticity Demand for Paint
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Length: 2-3-page Word document
You are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following:
1. Compute the price elasticity of demand for paint and show your calculations.
2. Decide whether the demand for paint is elastic, unitary elastic, or inelastic.
3. Explain your reasoning and interpret your results.
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This complete, neat and step-by-step solution provides calculations and discsses the results in 140 words in the attached Word document.
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