Calculate price elasticity

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a. Calculate price elasticity at point S using the method E=ΔQΔP×PQ.

b. Calculate price elasticity at point S using the method E=PP−A.

c. Compare the elasticities in parts a and b. Are they equal? Should they be equal?

d. Calculate price elasticity at point R.

e. Which method did you use to compute E in part d, E=ΔQΔP×PQ or E=PP−A? Why?

Reference no: EM13816779

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