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Along a demand curve, the price changes from 60 to 70. This causes the quantity demanded to change from 70 to 65.
a. Calculate the demand curve and the inverse demand curve.
b. Calculate the price elasticity of demand using the price/quantity combination of 60,70 as the base.
c. Calculate the price elasticity of demand using the price/quantity combination of 70,65 as the base.
d. If we were just given a point, what formula could we use to calculate elasticity?
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