A firm currently charges a price of $100 per unit of output, and its revenue (price multiplied

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A firm currently charges a price of $100 per unit of output, and its revenue (price multiplied by quantity) is $70,000. At that price it faces an elastic demand (€Q, P < −1). If the firm were to raise its price by $2 per unit, which of the following levels of output could the firm possibly expect to see? Explain.
a) 400
b) 600
c) 800
d) 1000
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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