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1) Firms are interested in the magnitude of the price elasticity of demand coefficient. The magnitude...

1) Firms are interested in the magnitude of the price elasticity of demand coefficient. The magnitude of ?? determines whether the demand for a good or service is elastic, inelastic or unit elastic. For the following cases indicate whether demand is elastic, inelastic or unit elastic. 1 < |??| < ∞ |??| = 1 0 < |??| < 1 2)

2, What happens to the absolute value of the price elasticity of demand as you move up a demand curve?

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