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Own Price elasticity

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Own Price elasticity. Given the data to the right, compute the POINT elasticity of demand of a good as its price goes from \$1.00 to \$1.50. Show formula and work.
Price Quantity
1.00 10
1.50 9

Is the demand for this good in this range elastic or inelastic?

If the wage bill per unit of labor (L) is \$30 and the cost of capital (K) is \$200 in the short run, fill in the BLANKS in the table below.
L Q TVC MPL APL AVC TFC TC ATC MC
0 0 200
1 4 200
2 10 200

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Solution Preview

Own Price elasticity. Given the data to the right, compute the POINT elasticity of demand of a good as its price goes from \$1.00 to \$1.50. Show formula and work.
Price Quantity
1.00 10
1.50 9

Point elasticity = % change in quantity ...

Solution Summary

Own Price elasticity is determined.

\$2.19