Suppose that the demand and supply functions for a good are given as follows: Demand: Q = 720 – 8P Supply: Q = -160 + 3P What is the price elasticity of demand at the equilibrium when there is no tax? 8. O 0.5 1.25

Suppose that the demand and supply functions for a good are given as follows: Demand: Q = 720 – 8P Supply: Q = -160 + 3P What is the price elasticity of demand at the equilibrium when there is no tax? 8. O 0.5 1.25

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 14QP

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Question

Suppose that the demand and supply functions for a good are given as follows:
Demand: Q = 720 –8P
Supply: Q = -160 + 3P
What is the price elasticity of demand at the equilibrium when there is no tax?
8
4.
0.5
1.25

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