Henri Matisse was an innovative and famous French artist of the early 20th century, perhaps best known

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Henri Matisse was an innovative and famous French artist of the early 20th century, perhaps best known for his expressive use of color in paintings. Some of his paintings have sold for over \(\$ 20\) million. The supply curve for his art has been vertical, perfectly inelastic supply since his death in 1954. Suppose the price elasticity of demand for Matisse's paintings by wealthy buyers is -0.2 . If \(10 \%\) of the paintings are either destroyed or lost, by how much will the equilibrium price for his paintings be affected?

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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