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Gummy Inc. sells handcrafted medicinal gummies in City A and City B. The marginal cost of producing each packet of gummies is $2 regardless of
Gummy Inc. sells handcrafted medicinal gummies in City A and City B. The marginal cost of producing each packet of gummies is $2 regardless of market. Assume for simplicity no fixed costs. Q designates the number of packets of gummies sold per day. City A's demand: P = 8 - 0.25*Q City B's demand: P = 4 - 0.1*Q Based on your results, which city has the most elastic demand? Explain briefly
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Principles of Microeconomics
Authors: N. Gregory Mankiw
8th edition
1305971493, 978-1305971493
