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20 points) A bookstore owner currently sells a popular writing software package for $129.99, which costs them $89.00 wholesale. They've calculated the price elasticity of
20 points) A bookstore owner currently sells a popular writing software package for $129.99, which costs them $89.00 wholesale. They've calculated the price elasticity of demand for this software to be 3.9 at the current sales price. a. To maximize net contribution, should the owner increase, decrease, or keep the price the same? (10 points) b. If the elasticity estimates of 3.9 remains consistent within a price range of $15.00 above or below the current price, what is the optimal price point for the owner to set? (10 points)
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