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Economics

Suppose Suzuki increases the price of a particular motorcycle model by 12 percent and as a result the quantity demanded for that model decreases by 4 percent.

a. Calculate the price elasticity of demand for that motorcycle model.

b. Determine whether demand facing Suzuki for this model is elastic, inelastic, or has unitary elasticity.

c. Determine what will happen to total revenue from that motorcycle model as a result of the price increase and briefly explain how you arived at your answer.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91234671

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