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Estimate the price elasticity of demand for product

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Assume the price of a good decrease from $10 to $8, leading to a rise in quantity demanded from 475 to 500 units. Using the midpoint elasticity formula, calculate the price elasticity of demand for the good at this price range. Explain why it is important for a business to estimate the price elasticity of demand for its product.

Reference no: EM131179919

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