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Clark Manufacturing Offers Two Product Lines, IN2 and EL5

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Clark Manufacturing offers two product lines, IN2 and EL5. The demand of the IN2 product line is inelastic, while the demand of the EL5 product line is very elastic. If Clark initiates a price increase for both product lines, how will customer demand change? How will the price increase affect operating profits?

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For the inelastic product line, when pri...

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