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Suppose that a manufacturer sells a product through an upscale boutique and, with a different brand name, through a discount retailer. The elasticity of demand
Suppose that a manufacturer sells a product through an upscale boutique and, with a different brand name, through a discount retailer. The elasticity of demand at the boutique is -1.2, and at the discount retailer it is -2.6. If the optimal price at the boutique is $85, what price (PD) should be charged at the discount retailer?
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