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1-Suppose a demand function can be specified as: QW= 400-3p, a) evaluate the point elasticity of demand when the price is $10. As a manager,

1-Suppose a demand function can be specified as: QW= 400-3p,

a) evaluate the point elasticity of demand when the price is $10. As a manager, will you increase the price? Why?

(b) Imagine that your competitors increase the price of this good, how will you respond to the price increase as a manager? Why?

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