The figure shows the demand for DVD rentals. a. Calculate the elasticity of demand when the price
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a. Calculate the elasticity of demand when the price of a DVD rental rises from $3 to $5.
b. At what price is the elasticity of demand for DVD rentals equal to 1?
Transcribed Image Text:
0 25 50 75 100 125 150 DVD rentals per day
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a The price elasticity of demand is 2 When the price of a DVD rental rises from 3 to 5 the quantity ...View the full answer
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