(Solution) - The demand function for a cola type soft drink in general -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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The demand function for a cola-type soft drink in general is Q = 20 - 2P, where Q stands for quantity and P stands for price.
a. Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points?
h. Calculate arc elasticity at the interval between P = 5 and P = 6.
c. At which price would a change in price and quantity result in approximately no change in total revenue? Why?