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Suppose that you own your business and the price elasticity of demand for your product is 2 (in absolute value). You are selling your product for $8 each and your constant marginal cost is $4. You plan to increase your price by 10% to $8.80. Based on this information, by what percentage will the quantity demanded of your product decrease if you carry out you plan to increase your price by 10%?
Answers: 1
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Suppose that you own your business and the price elasticity of demand for your product is 2 (in abso...
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