Should the micro brewing corporation raise the price

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The Micro Brewing Corporation asks you to forecast changes in consumer beer purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $5.50 to $7.50, the quantity demanded will decrease from 2,200 units to 1,800 units a month. Should the Micro Brewing Corporation raise its price? Explain the economic basis for this recommendation.

Reference no: EM13221221

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