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Suppose That a 20 Percent Increase in the Price of Throw

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Suppose that a 20 percent increase in the price of throw pillows leads to a 60 percent decrease in the quantity demanded of throw pillows. What is the price elasticity of demand for throw pillows? If a seller of this good wants to change the price in order to increase total revenue from selling throw pillows, what should it do? Explain.

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