Question: Consider two demand curves. The first is linear, with the demand curve given by QD = 100 20P. The second is nonlinear, with the

Consider two demand curves. The first is linear, with the demand curve given by QD = 100 – 20P. The second is nonlinear, with the demand curve given by QD = 60/P. For each of these demand curves, compute the quantity demanded at prices of $1, $2, $3, $4, $5, and $6. Graph each of the demand curves. Use the midpoint method to calculate the price elasticity of demand between $1 and $2, and between $4 and $5 for each demand curve. Compare the price elasticities in these cases. In particular, how does the elasticity of the nonlinear demand curve for the two price movements differ from the elasticity of the linear demand curve for the same price movements?

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