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This question was created from ECO 550 Week 3 Discussion 3.docx


Now explain:
Is the demand curve for your product relatively elastic, inelastic or unitary
elastic? Demonstrate for your company's product, by how much the quantity demanded w
change if you pass on the 25% increase in cost from the tariff as a price increase for your
product. In other words, show your calculation of the percentage change in the
quantity demanded given a 25% change in the price.
Given your company's price elasticity of supply and price elasticity of damand
prepare a statement for your board as to the potential impact of profits. Who will pay the
the larger share of the tariff, your firm or your customers.

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