Mathematics · Elasticity of Demand & Differentiation
The price elasticity of demand is defined as ep = (dQdP) × (PQ). If the demand function is Q = 100 - 2P, at P = 20, the price elasticity of demand is:
- 1-0.5
- 2-2
- 3-23✓
- 4-1
Correct answer
-23
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