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Pick two products: one that is relatively price inelastic and another that is relatively price elastic. Determine a product's relative price elasticity by considering the
Pick two products: one that is relatively price inelastic and another that is relatively price elastic. Determine a product's relative price elasticity by considering the Determinants of the Price Elasticity of Demand. You should begin by defining your product in terms of the determinants and then describe how increases in the price would affect total revenue. Would it make good business sense to be the one producing and selling these products? Why or why not?
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