Assume the demand function for XYZ exhibits a constant elasticity of 4. The current demand in the

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Assume the demand function for XYZ exhibits a constant elasticity of −4. The current demand in the market is 10 million shares, and the current price of XYZ is $64. If you try to sell an additional 2.5 million shares, by how much will the price of XYZ decrease?

What will the proceeds from the sale be? Use Equation 9.3 to get your answer.

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