Given the estimated demand function is:
Qd = 36315-9937 *price-0.09 * income+0.02 * customers + 2918* price of natural gas
Estimate the (own) price elasticity (of demand). Assume the following: own price is $3, income is $60,000, the market has 2,000,000 potential customers and the price of natural gas is $4. (The following numbers are absolute values.)
Own price elasticity of demand is calculated from the given demand function.
Elasticity, Demand, and Total Revenue
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