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8) [2 points] Jon grows industrial hemp. At a price of $100/pound, the quantity demanded is 1600 pounds. Jon is considering increasing the price by

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8) [2 points] Jon grows industrial hemp. At a price of $100/pound, the quantity demanded is 1600 pounds. Jon is considering increasing the price by 4%. Assuming the elasticity of demand for industrial hemp is -3, should Jon increase the price? Explain. [Note: here we have assumed the market is not perfectly competitive, and Jon has some flexibility in setting prices]

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