Assume that the demand function for a certain item is Q = 250 - 0.8p. How big is the demand elasticity at the point of the demand curve where the price of the product is 52. A) 0.8. B) - 0.8 C) 0.2. D) - 0.2. (right answer is D, but I need step by step to come to this conclusion)

Assume that the demand function for a certain item is Q = 250 - 0.8p. How big is the demand elasticity at the point of the demand curve where the price of the product is 52. A) 0.8. B) - 0.8 C) 0.2. D) - 0.2. (right answer is D, but I need step by step to come to this conclusion)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 34P: The equation for a demand curve is P=2/Q. What is the elasticity of demand as price falls from 5 to...

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Question

Assume that the demand function for a certain
item is Q = 250 - 0.8p. How big is
the demand elasticity at the point of the
demand curve where the price of the product
is 52.
A) 0.8.
B) - 0.8
C) 0.2.
D) - 0.2.
(right answer is D, but I need step by step to
come to this conclusion)

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