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In summer 2014, Sony decided to cut the price of its Playstation 3 video game console from $600 to $500. One industry analyst forecast that

In summer 2014, Sony decided to cut the price of its Playstation 3 video game console from $600 to $500. One industry analyst forecast that the price cut would increase sales from 80,000 units per month to 120,000 units per month. Assuming the analyst's forecast is correct, calculate the price elasticity of demand for Playstation 3.

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