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1. Suppose the demand for a product is given by QD = 50 - (1/2)P.
a) Calculate the Price Elasticity of Demand when the price is $60.
b) What price should the firm charge if it wants to maximize its revenue?
c) Over what price range is demand elastic?
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A bank advertises home loans at low interest rates for its account holders for three months. Toward the end of the second month the bank withdraws the offer.
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