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Assume the demand for an item isx=10004p 3 x=10004p3where x is the quantity and p is the price per quantity. If p=$1.20, a) Is demand

Assume the demand for an item isx=10004p

3

x=10004p3where x is the quantity and p is the price per quantity. If p=$1.20,

a) Is demand elastic or inelastic?

b) Will a 5% increase in the price cause revenue to increase or decrease?

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