2.15. A firm currently charges a price of $100 per unit of output, and its revenue (price...

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2.15. A firm currently charges a price of $100 per unit of output, and its revenue (price multiplied by quantity)

is $70,000. At that price it faces an elastic demand

(!Q,P $ #1). If the firm were to raise its price by $2 per unit, which of the following levels of output could the firm possibly expect to see? Explain.

a) 400

b) 600

c) 800

d) 1000

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Oct 12, 2024 09:00 AM

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2.15. A firm currently charges a price of $100 per unit of output, and its revenue (price...

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Microeconomics

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