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Global Crossing is a major provider of fiber optic cable capacity...having a 70% market share. It is in possession of a technology that has the capability of expanding capacity (output) of its product by 20% without any increase in Global Crossing's cost. The overall market elasticity of demand for such capacity is .-06.

What will happen to the market price should Global Crossing introduce the new technology assuming other competitors do not react to Global Crossing's action?

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