Your marketing department estimates that at the current price and quantity, your firms product has a price
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Your marketing department estimates that at the current price and quantity, your firm’s product has a price elasticity of demand of 1.1. You run an advertising campaign that changes the demand, so that at the current price and quantity the elasticity falls to 0.8. In response to this change, would you raise the price, lower it, or keep it the same? Explain your answer.
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