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1.The new Millennium Dome Company (NMDC) must choose the entry fee for a new sports arena. Suppose an expensive consultancy firm has estimated the demand schedule to be as follows:
a.Compute the price elasticity of demand for the range P= $30 to P= $24 and for the range P=$18 to P= $12. (Show your work)
b.The current admission price is $ 18. If NMDC wants to increase its total revenue, should it charge a lower or higher price?
Elasticity of demand for a good with respect to its own price, yet pay careful attention to the algebraic sign of the elasticity of demand for a good with respect to another good's price.
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Identify and enumerate the factors affecting the supply, demand, and price for the company's products and examine whether the demand for the company's products is relatively price elastic or relatively price inelastic and explain why.
Recent health reports indicate that calcium is asorbed better in natural forms as milk, and at the same time, the cost of milking equipment rises. Examine the probable effects on the market.
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