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At a university faculty meeting in 2000, a proposal was made to increase the housing benefits for new faculty to keep pace with the high cost of housing. What will likely be the long-run effect of this proposal?

Use (P-MC)/P = 1/?e? to find out MC and then use the same equation to find out the new price. ?e? is the absolute value of demand elasticity.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M946514

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