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If you were to use a new technology that would enable a fifteen percent increase in your output, and the elasticity of demand of your

  1. If you were to use a new technology that would enable a fifteen percent increase in your output, and the elasticity of demand of your product is -3, how would you adjust your price if you wanted to sell all of your output? (Show your calculations)
    1. 5% lower.
    2. 0.5% lower.
    3. 15% higher.
    4. 15% lower.

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