Assume that the demand curve is a straight line. If the price per unit of...
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Accounting
Assume that the demand curve is a straight line. If the price per unit of a good rises from $2.40 to 3.00, it is expected that monthly demand will fall from 250,000 units to 200,000 units. What is the point price elasticity of demand when the price is $2.40? What is the arc price elasticity of demand over these ranges of price and output? Is the demand for this good price sensitive?
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