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1. (20 total points) Suppose the demand for a product is given by On = 50 (l/2)P. a) (10 points) Calculate the Price Elasticity of

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1. (20 total points) Suppose the demand for a product is given by On = 50 (l/2)P. a) (10 points) Calculate the Price Elasticity of Demand when the price is $40. b) (5 points) What price should the firm charge if it wants to maximize its revenue? 0) (5 points) Over what price range is demand elastic

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