Use Example 15 .2 to calculate the elasticity of demand facing a monopoly producer of four-wheel drive

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Use Example 15 .2 to calculate the elasticity of demand facing a monopoly producer of four-wheel drive trac- tors, assuming it rents in the future but has sold units in the past, of which 20 units remain. Show how the elas ticity is affected by the ratio of new to used equipment.

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Modern Industrial Organization

ISBN: 9780321011459

3rd Edition

Authors: Dennis W. Carlton, Jeffrey M. Perloff

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