In Panel A of Figure 6.1, verify that demand is unitary elastic over the price range of
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In Panel A of Figure 6.1, verify that demand is unitary elastic over the price range of $11 to $13 without calculating the price elasticity of demand.
Figure 6.1
Transcribed Image Text:
Quantity effect dominates Price effect dominates 24 24 E = -2.43 18 18 16 16 f 13 g 11 E = -0.50 7 600 800 1,100 1,300 2,400 600 800 1,500 1,700 2,400 Quantity of DVDS per week Panel A – An elastic region of demand Quantity of DVDS per week Panel B – An inelastic region of demand Price per DVD (dollars) Price per DVD (dollars)
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Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021909
12th edition
Authors: Christopher Thomas, S. Charles Maurice
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