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Measuring Point Elasticity on a Linear Demand Curve
To explain the measurement of point elasticity of a linear demand curve, let's suppose that a linear demand curve is given by MN in Figure below and that we want to measure elasticity at point P.
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The market demand for brand X has been estimated as Qx=1500-3Px-0.05I-2.5Py+7.5Pz
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