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Please Help with study for test prep. DOES NOT VIOLATE HONOR CODE 50) Firm A producing one good acquires another firm B producing another good.

Please Help with study for test prep. DOES NOT VIOLATE HONOR CODE

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50) Firm A producing one good acquires another firm B producing another good. Price elasticity of demand for Firm A's good is -1.8 and Firm's B is -1.8. Holding other things constant and assuming both goods are substitutes, the acquiring firm should a) b) c) d) Raise prices on both goods with a larger increase in Firm A's good Raise prices on both goods with a larger increase in Firm B's good Raise prices on both goods by the same amount Lower prices on both goods

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