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A firm currently sells 3,500 units of its product at a price of $500. It cuts price to 350 and then sells 5,000 units. What
A firm currently sells 3,500 units of its product at a price of $500. It cuts price to 350 and then sells 5,000 units. What is the arc price elasticity of demand? Carry the answer out to two decimal places, e.g. -2.531 is -2.53, -.156 is -.16, etc. Round up if necessary.
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