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5. Suppose that the elasticity of demand for motel rooms in a town near an oceanfront, with beautiful beaches, is 1.0 and the elasticity of

5. Suppose that the elasticity of demand for motel rooms in a town near an oceanfront, with beautiful beaches, is 1.0 and the elasticity of supply is 0.50. If the population of the surrounding area increases by 30%, in what direction and by What percentage will the price of motel rooms change? ANS

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