Price elasticity of demand and the slope of the demand curve, Managerial Economics

Price Elasticity of Demand and the slope of the Demand Curve

Elasticity determines the shape of the demand curve.

From the formulas

                        290_price elasticity.png

                         Δp/p

We can say

290_price elasticity.png ÷  Δp/p

 

 = ?q x P = ?Q x P

    q    ?P   ?P   Q

Therefore, for a straight line demand curve

Posted Date: 11/27/2012 6:33:11 AM | Location : United States







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