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Joe's hot dog stand projects the following demand for hot dogs:
Price Quantity Purchased (per day)
$4 50
$5 40
$6 20
Calculate the same price elasticity of demand between $4 and $5. SHOW YOUR WORK.
Calculate the same price elasticity of demand between $5 and $6. SHOW YOUR WORK.
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(a) Draw a cash flow diagram of both alternatives.
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