Question: Suppose that your demand curve for X is given by the equation X = c dP where P is price and c and d

Suppose that your demand curve for X is given by the equation

X = c − dP

where P is price and c and d are positive constants.

a. Derive a formula for your price elasticity of demand for X, and write your formula in terms of X alone.

b. When you consume zero units of X, what is your price elasticity of demand? When the price of X is zero, what is your price elasticity of demand?


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