Determine the price elasticity of demand
Suppose Qxd = 10,000 - 2Px + 3 Py - 4.5M , where Px = $100, Py = $50, and M = $2,000. What is the price elasticity of demand?
a. -2.34
b. -0.78
c. -0.21
d. -1.21
e. None of the above.
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