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Answer to Question #38628 in Economics of Enterprise for marvi
Question #38628
Demand for a softback managerial economics texr is given by Q=20,000-300R
The book is initially priced at $30
a. Compute the point price elasticity at demand at P=$30
b. If the objective is to increase total revenue should the price be increased or decreased? Explain
c. Compute the are price elasticity for a price decrease from $30 to $20
d. Compute the are price elasticity for a price decrease from $20 to $15
The book is initially priced at $30
a. Compute the point price elasticity at demand at P=$30
b. If the objective is to increase total revenue should the price be increased or decreased? Explain
c. Compute the are price elasticity for a price decrease from $30 to $20
d. Compute the are price elasticity for a price decrease from $20 to $15
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