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Question: for each of the following cases what is the expected...

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FOR EACH OF THE FOLLOWING CASES, WHAT IS THE EXPECTED IMPACT ON THE TOTAL REVENUE OF THE FIRM? EXPLAIN YOU REASONING.

A. PRICE ELASTICITY OF DEMAND IS KNOWN TO BE -0.5, AND THE FIRM RAISES PRICE BY 10 PERCENT.

B. PRICE ELASTICITY OF DEMAND IS KNOWN TO BE -2.5, AND THE FIRM LOWERS PRICE BY 5 PERCENT.

C. PRICE ELASTICITY OF DEMAND IS KNOWN TO BE -1.0, AND THE FIRM RAISES PRICE BY 1 PERCENT.

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