Consider a perfectly competitive market described by the


Consider a perfectly competitive market described by the demand function P = 60 - 0.3Q and supply function P = 10 + 0.2Q. Using the standard formula (versus the mid-point formula) for calculating elasticities, it may be concluded that at the equilibrium price and quantity:

a) ED = -0.09 and ES = 0.66

b) ED = -0.09 and ES = 1.5

c) ED = -1 and ES = 0.66

d) ED = -1 and ES = 1.5

e) ED = -1.6 and ES = 1.8

f) ED = -2.2 and ES = 1.8

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Business Economics: Consider a perfectly competitive market described by the
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