Question 11
The linear demand response for product-A is modelled as a simple linear regression represented as D(P) = 2800 – 40*P, where D(P) is the demand at price-P. Then, answer the given sub questions
What is the elasticity of the demand response curve when the price is Rs.50? (Note: If your answer is in decimal, enter it rounded to two decimal places. For example, if your answer is “10.256”, enter it as “10.26”)