Yesterday, the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes.

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Yesterday, the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to $3.75 a box, and Julie is now willing to buy 8 boxes.

1.What is Julie's elasticity of demand?

2.Is Julie's demand for envelopes elastic or inelastic?

3.To have total revenue increases, should she decrease the price of the envelopes? Why or why not?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Jan 29, 2024 08:07 AM

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Yesterday, the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes.

Question:

Expert Answer:

Analyzing Julies Demand for Envelopes 1 Elasticity of Demand To calculate Julies elasticity of deman... View the full answer

Income Tax Fundamentals 2013

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