Let's check the elasticity at the other end of the demand curve, when price drops from 2 to 1. Using the arc elasticity formula, with the same demand curve, we see that demand is very
inelastic
at this end.
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Let's check the elasticity at the other end of the demand curve, when price drops
from 2 to 1. Using the arc elasticity formula, with the same demand curve, we see that demand is very inelastic at this end.
