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

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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


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