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Suppose an office supply store increased its price of file folders from $.79/box to $.99/box and the quantity demanded decreased from 85 boxes/month to 83 boxes/month. What is the price elasticity of demand for file folders? Is the demand elastic, unit elastic or inelastic? Calculate the change in total revenue as a result of the price increase. What happens to the total revenue generated for the office supply store as a result of the price increase, and how does it show the relationship between elasticity and total revenue? If the price of a product were increased from $25 to $26 and quantity demanded fell from 10 to 9, calculate the price elasticity of demand. Is the demand elastic, unit elastic or inelastic. Calculate the change in total revenue as a result of the price increase. What happens to the total revenue generated for the office supply store as a result of the price increase, and how does it show the relationship between elasticity and total revenue?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91707390

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