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The price elasticity of demand for crude oil is known to be 0.72, and the number of barrels demanded per day is 10,000, at a
The price elasticity of demand for crude oil is known to be 0.72, and the number of barrels demanded per day is 10,000, at a market price of $80 per barrel. Other things held constant, if an analyst is fairly certain that the price of oil will fall by 10% by the start of the winter, using the data given, what is your best estimate of the expected quantity that will be demanded then?
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