Question: The demand function for a cola-type soft drink in general is Q = 20 - 2P, where Q stands for quantity and P stands for

The demand function for a cola-type soft drink in general is Q = 20 - 2P, where Q stands for quantity and P stands for price.
a. Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points?
b. Calculate arc elasticity at the interval between P = 5 and P = 6.
c. At which price would a change in price and quantity result in approximately no change in total revenue? Why?

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a Q 20 2P slope QP 2 At P 5 Q 20 2 x 5 10 At P 9 Q 20 2 x 9 2 When Q 10 and P 5 p 2 x 510 1 Unit... View full answer

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