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Okamoto Corporation's management believes that every 7% increase in the selling price of one of the company's products would lead to a 10% decrease in

Okamoto Corporation's management believes that every 7% increase in the selling price of one of the company's products would lead to a 10% decrease in the product's total unit sales. The variable cost per unit of this product is $69.20.

1. Compute the product's price elasticity of demand to two decimal places.

2. Compute the product's profit-maximizing price.

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