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Suppose the demand function is Q=100-P, where Q is the quantity demand and P is the price. Please calculate the price elasticity at P=10 (by comparing it with a pair of price and quantity at P=20). Calculate the change in total revenue which is P times Q moving from P=10 to P=20. Repeat the same exercise for P=70 versus P=80. Please comment on your findings.

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Ronald
RonaldLv2
28 Sep 2019

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