Determined the point price elasticity of demand

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Reference no: EM13159058

Demand for DVD rentals at a video store is described by the equation: Q=4000 - 500P, where Q denotes the number of DVDs rented per week and P is the rental price un dollars.

(a) determined the point price elasticity of demand at P=$3

(b) What is the new point price elasticity if price is raised to P=$4.50? Comment on the change in elasticity

Reference no: EM13159058

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