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    Survey of Economics Principles
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    Exam 4: Elasticity: A Measure of Responsiveness
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    Suppose That You're the Manager of a Firm
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Suppose That You're the Manager of a Firm

Question 167

Question 167

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Suppose that you're the manager of a firm. You notice that when you raised your price from $10 to $11, sales fell from 500 to 400. Should you raise your price more?

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No. In fact, you should lower your price...

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