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You Raise Your Product Price by $10 in Market a but Leave

Question 22

Multiple Choice

You raise your product price by $10 in market A but leave it unchanged in market B.Sales in A fall from 840 units per week to 740 while sales in B rise from 770 to 790.The Difference-in-difference estimate of the effect of the price change is:


A) 80 units
B) 100 units
C) 120 units
D) 140 units

Correct Answer:

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