Question: Suppose that new entry into your industry changed your demand elasticity from 1.5 to -2.3 (made demand more elastic). By how much should you adjust

Suppose that new entry into your industry changed your demand elasticity

Suppose that new entry into your industry changed your demand elasticity from 1.5 to -2.3 (made demand more elastic). By how much should you adjust your price of $50 if the original price was set to yield the optimal margin

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