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7) Suppose a demand curve is given by Q = 36 - 3P.

a) Calculate the price elasticity of

demand when P=3

b) What is the firm's marginal revenue when P=3?

c) What price should the firm charge to maximize Total Revenue?

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A. Price elasticity of demand = 3 A change in the price by 1 changes the quantity by 3 units.... View the full answer

Price elasticity is the... View the full answer

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