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Revenue change from price decreasepLoss L = q (−∆ p), Gain G = p ∆ qG > L iff p ∆ q > q (−∆ p)iff∆ q∆ ppq < −1∆pqE 1E 2p∆qq

Answers to Chapter 4 Exercises - Luiscabral.net

5 Monopoly and Regulation - Luiscabral.net

Answers to Chapter 3 Exercises - Luiscabral.net

Answers to Chapter 2 Exercises - Luiscabral.net

Answers to Chapter 7 Exercises - Luiscabral.net

Answers to Chapter 5 Exercises - Luiscabral.net

9 Collusion and Price Wars - Luiscabral.net

4 Competition, Equilibrium and Efficiency - Luiscabral.net

Answers to Chapter 6 Exercises - Luiscabral.net

Elasticity, price, and revenueExamples: for a 1% decrease in price,• Cigarettes: revenue falls approx 0.5% = −.1%×(1+(−.5))• U.S. luxury cars: revenue rises approx 0.9%• Foreign luxury cars: revenue rises approx 1.8%

Revenue change from price decreasepLoss L = q (−∆ p), Gain G = p ∆ qG > L iff p ∆ q > q (−∆ p)iff∆ q∆ ppq < −1∆pqE 1E 2p∆qq

Page 4 and 5: Demand elasticity: definitionɛ≡d
Page 6 and 7: Demand elasticity: definitionɛ≡d
Page 8 and 9: ExamplesProductElasticityMilk -0.5C
Page 10 and 11: Elasticity illustrated: constant el
Page 14 and 15: Cross-price elasticity• Idea: How
Page 16 and 17: Example: U.S. gasoline demand (cont
Page 18 and 19: Example: gasoline demand• From 19

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