Question
In the market for hand-made guitars, when the price of guitars is $800, annual revenue is $640,000. When the price falls to $700, annual revenues
In the market for hand-made guitars, when the price of guitars is $800, annual revenue is $640,000. When the price falls to $700, annual revenues decline to $630,000. Over this range of guitar prices, is the demand for hand-made guitars elastic, unit-elastic, or inelastic?
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz
11th Edition
134519574, 9780134521046 , 978-0134519579
