Suppose that a manufacturer sells a product through an upscale boutique and, with a different brand name, through a discount retailer. The elasticity of demand at the boutique is -1.2 and at the discount retailer is -2.6. If the optimal price at the boutique is $85, what price ( PD ) should be charged at the discount retailer?

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Lerner Index LI 1 Elasticity Again LI P MC P ... View the full answer