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Problem 1: Price Elasticities and Revenue
A company has experimented with 4 different prices.
At a price of $19, 36 percent of potential customers purchase. And so on.
price
quantity
% ? price
% ? quantity
%? quantity / % ? price
revenue
$19
0.36
e.g., (39-19)/19
e.g., (0.32-0.36)/0.36
$39
0.32
$59
0.27
$99
0.24
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