Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 12, Problem 6P
(a)
To determine
The new revenue if price rise is 10% and
(b)
To determine
Whether the price will rise or fall, if the elasticity is -2.
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Question 29
Assume lawyer services have an elasticity of demand of 0.5 in absolute value. Currently, a lawyer charges $300 per consultation and she has 100 consultations per week. If she raises her rate to $450 per consultation (a 50% increase) her revenue will (use the general formula for elasticity not the midpoint formula)
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Chapter 12 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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