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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Microeconomics: Determine the price elasticity of demand
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