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You are the owner of a Mom and Pop store that buys milk from a supplier...

You are the owner of a Mom and Pop store that buys milk from a supplier at a cost of $1 per gallon. If you estimate the elasticity of demand for milk sold at your store to be –3.5, what are your profit-maximizing markup and price?

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Answer #1

# Milk Cart: $1 / gallon So Marginal cort EMC)= $1 Elasuring Elasticity of demand (Ed) – 3.5 Jack up at heft Maximizing : 1 +

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