Question: Suppose you were shown a demand curve for bananas and
Suppose you were shown a demand curve for bananas and were asked to calculate price elasticity of demand. Applying the appropriate equation, you came up with 0.80. Your friend was asked to derive price elasticity of demand on the identical demand curve and came up with 0.50. Worried, you asked your professor which of the two answers was correct. The professor checked through both calculations and said both were! How can that be?
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