Economics 51 and 52
08/16/10 03:38 PM
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The demand curve for Valentine's Day cards is shown below:
The picture is drawn to scale. That is, using your ruler carefully, you can find X,Y coordinates from the picture.
Hint #1: The price elasticity of demand is
Hint #2: The first hint can be rearranged to give . On the right hand side you have the ratio of a particular P to a corresponding Q times the inverse of the slope of the demand curve.