a. Calculate price elasticity at point S using the method E=ΔQΔP×PQ.
b. Calculate price elasticity at point S using the method E=PP−A.
c. Compare the elasticities in parts a and b. Are they equal? Should they be equal?
d. Calculate price elasticity at point R.
e. Which method did you use to compute E in part d, E=ΔQΔP×PQ or E=PP−A? Why?