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Coffee Mug Pricing Manny's Merchandising Can Custom Print Logos onto Coffee Mugs.It Sells

Question 86

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Coffee Mug Pricing
Manny's Merchandising can custom print logos onto coffee mugs.It sells it most popular style for $10 and has a marginal cost,including a blank mug and the printing,of $6.Manny recently ran a diff-in-diff experiment and determined your demand elasticity is -5.Should Manny raise or lower price?

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Manny's current markup is (P-M...

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