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Question: a company is interested in examining elasticity of a new...

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A company is interested in examining elasticity of a new product. Economists at that company estimate that short run and long run demands are QD=400-4P and QD= 200-1P respectively. At price of P=75

  1. What is the price elasticity of demand in the short run?

  2. What is the price elasticity of demand in the long run?

  3. Given your answers in 1) and 2), is this product a durable or non-durable good?

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