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Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices.
Price of crackers Quantity Demanded (per month)
$3 80
$2.5 120
$2 160
$1.5 200
$1 240
$1.00 - $1.50: ___________________________________
$1.50 - $2.00: ___________________________________
$2.00 - $2.50: ___________________________________
$2.50 - $3.00: ___________________________________
If the price of graham crackers is $2.50 should firms raise or lower their prices if they want to increase revenue? Explain this in terms of elasticity.
There are six companies in the industry. Assume their sales in the year 2006 are as follows, Determine the concentration ratio in the industry
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