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Suppose 25 firms are in the sandals market, in which market demand elasticity is 1.51.5. The elasticity of supply is 11. A single firm in

Suppose 25 firms are in the sandals market, in which market demand elasticity is 1.51.5. The elasticity of supply is 11. A single firm in this industry decides that, because there are only 2424 competitors, it might be a good idea to increase prices by 1%1%. Calculate the elasticity of demand facing a single firm to determine whether this is a good idea.

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