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Suppose the price elasticity of demand for oranges equals -0.2 in Texas and -0.4 in Florida. To increase revenue, orange farm

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Answer : Here the demand is inelastic in both Texas and Florida. In case of inelastic demand raising price increase the revenue. Hence here orange farmers should increase the price level in both Texas and Florida. But orange farmers should increase the price level more in Texas than Florida. Because in Texas the demand is more inelastic than Florida.

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