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An electronics retailing chain has established the monthly price (o)-demand (m) relationship for an electronic game as n(p) = 1000 - 10 (0 - 1)1
An electronics retailing chain has established the monthly price (o)-demand (m) relationship for an electronic game as n(p) = 1000 - 10 (0 - 1)1 They are trying to set a price level that will provide maximum revenue (R). They know that when demand is elastic (E > 1), a drop in price will result in higher overall revenues (R = np), and that when demand is inelastic (F 1) are considered elastic (e-g., new cars), and those with elasticities less than one (E
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