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The demand for candy bars is given by P = 5 - 0.01Q, where P is measured in dollars and Q in candy bars.
a. How much revenue is collected at $3?
b. What is the elasticity of demand at $3?
c. At what point is revenue maximized?
d. If the supply curve is given by Q = 10P, what is the equilibrium price?
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Draw the demand and supply graph for each of the following situations: 1) Sellers drop out of the wedding photography business 2) Gas prices decrease 3) Fans become more supportive of pro soccer 4) Hockey fans experience a decline in income 5) A book..
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