Nur R.

asked • 01/13/21

based on market demand and total expenditure

Hatta Enterprises has developed a new product. The market demand for this product is given as follows:

QD = 240 - 4P

i. If the product is priced at $40, estimate the price elasticity of demand? Is demand elastic or inelastic?

(10 marks)

ii. If the product price is increased slightly from $40, what will happen to the total expenditure on the product?

(10 marks)

i have read many notes to answer this types of question but it just give me more confuse so i really need help

1 Expert Answer

By:

Laura M. answered • 01/13/21

Tutor
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Tutor specializing in Economics and Mathematics

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