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A firm has some market power and so can choose to change its price. An analyst employed by the firm runs some numbers from the

A firm has some market power and so can choose to change its price. An analyst employed by the firm runs some numbers from the sales over last couple of months and figures out the demand for the firm's product is inelastic (at the current price the firm charges). She suggests to the management that they should cut the price. Is she right to suggest lowering the price? Explain why.

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