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Using the Arc Elasticity for the Starbucks company to assess the dollar magnitude of net benefits of a decision to

raise price/output combinations by 5% in the short (1 Year) and medium term (5 Years, with resulting revenue increases or decreases spread evenly over 5 years) to recommend conditions under which mangers should increase, decrease, hold constant, or increase your firm's output, or price. When analyzing net benefit, use "r" to represent a current rate of interest.

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