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Calculating own price elasticity of demand

Suppose Qd = 10,000-2Px+3Py-4.5M,

where Px = $100, Py = $50, and M = $2,000.

What is the own-price elasticity of demand?

A. -2.34
B. -0.78
C. -0.21
D. -1.21

Solution Summary

Solution describes the steps to calculate own price elasticity of demand.

$2.19