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Your local grocery store offers a coupon that reduces the price of milk during the coming week. The regular retail price of milk in the store is €3 a gallon, and the coupon price is €2 per gallon for the next week. If the store maximizes profits and the price elasticity of demand for milk is -2 for coupon users, what is the price elasticity of demand for non-users?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M940521

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