Chapter 11: Answers to Questions and Problems

P 1 = E 1 1+ E 1 MC= -3 1-3 $40= 1.5 $40=$60 . P 2 = E 2 1+ E 2 MC= -5 1-5 $40= 1.25 $40=$50 .Here, there are two different groups with different (and identifiable) elasticities of demand. In addition, we must be able to prevent resale between the groups. Charge a … ................
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