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You sell widgets. Should you raise the price of your widgets? What will be the effect on total revenue?

• You sell widgets. Should you raise the price of your widgets? What will be the effect on total revenue? [Tip: Include elasticity, consumer and producer surplus, utility maximization, consumer equilibrium.]
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8442008.doc

The effect of price change on revenues, profits, and quantity sold depends on the
nature of the marker structure in which the widgets are sold. This structure
determines the demand elasticity for...

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