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Business
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| Number of pages / Number of words: |
6 / 1676 |
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This is shown in formula by: Q2-Q1 P1+P2
P2-P1 x Q2+Q1
This formula is used when there is the change in Price and the Quantity, which allows arc elasticity to be more accurate than point elasticity.
b. Construct on the same graph two straight-line demand curves with the same intercept on the vertical axis, with one curve flatter than the other...
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Can you make a general statement about which one is the more elastic curve? If so, what is it?
This demand curve shows two straight lines. Line A is steeper and represents a less elastic curve while Line B is flatter and represents a more elastic curve. Point elasticity is the measure of responsiveness or sensitivity of quantity demanded to changes in price...
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