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2001 7 7 Price Demand millions Supply millions 60 22 14 80 20 16 100 18 18 120 16 20 a. Calculate the price elasticity of demand when the price is 80. When the price is 100. We know that the price elasticity of demand may be calculated using equation 2.1 from the text E Q Q P P P Q Q D D D D = = D ∆ ∆ ∆ ∆.
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