Posted by John on Saturday, August 23, 2008 at 11:21am.
I have to determine the own price elasticity of demand with the following info given 1n Qdx = 3  0.5 1n Px  2.5 in Py + 1nM + 2 1n A where Px=$10, Py = $4, M = $20,000 and A = $ 250. Where do I begin?
Thank you

Managerial Economics  drwls, Saturday, August 23, 2008 at 11:42am
Begin by defining elasticity in mathematical terms of some derivative. Then recognize that what you call "1n" is probably the natural log "ln".
The definition of price elasticity of demand is d(lnQ)/d(lnP). Q represents demand
You have not defined M, Px and Py. I'm afraid that's as far as I can go with your question.

Managerial Economics  Angel, Saturday, August 23, 2008 at 11:47am
I would like to make a arc elasticity chart. We have a team project and would like to add in a arc elasticity demand to the paper.
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