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a)Jim advertises to sell donuts for $5 a dozen. She sells 60 dozen, and decides that she can charge more. She raises the price to
- a)Jim advertises to sell donuts for $5 a dozen. She sells 60 dozen, and decides that she can charge more. She raises the price to $6 a dozen and sells 40 dozen. Calculate price elasticity of demand. What can you infer about the elasticity of donut demand?
b) Assume the pair of CDS: CD of Bangla Song vs CD of Bangla folk song. Which one has more elastic demand? Briefly explain [3+1]
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Price Theory and Applications
Authors: Steven Landsburg
9th edition
1285423526, 978-1285947877, 1285947878, 978-1285423524
