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Assignment: Economics for Global Decision Management
Directions
1. Explain the relationship between the price elasticity of demand and total revenue. What are the impacts of various forms of elasticities (elastic, inelastic, unit elastic, etc.) on business decisions and strategies to maximize profit? Explain your responses using empirical examples, formulas, and graphs for the various types of elasticities.
2. Is the price elasticity of demand or supply more elastic over a shorter or a longer period of time? Why? Give examples.
3. What are the impacts of government and market imperfections (failures) on the price elasticities of demand and supply?
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