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# Answer to Question #106814 in Microeconomics for Steve

Question #106814
Marula enterprises has developed a new local brew called Stiff Neck. The market demand for this product is given as follows: Q=240-4P. If stick Neck is priced at 40$, what is the point elasticity of demand? 1 Expert's answer 2020-04-08T09:35:00-0400 "Ep=Q'(P)\u00d7\\frac{P1}{Q1};" "Q'(P)=-4" "Q1" "=240-4\u00d740;" "Q1=240-160;" "Q1=80;" "P1=40;" at a price of$ 40, demand is \$ 80.

"Ep=-4\u00d740\/80=-2" %;

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