Robert’s demand curve for good X is given by the equation X = 100 - 2PX.

a. What is the elasticity of demand at the point X=20, PX =40?

b. If price falls from PX =40 to PY =35, what happens to total spending for X and what does this imply about the elasticity of demand?

c. Compute the elasticity to verify the answer.

Answer rating: 100% (QA)

Demand function is QX 100 2PX a Elasticity of demand is given b... View the full answer